Tether, the stablecoin issuer behind USDT, is gearing up to double its workforce in the coming year, with the aim of strengthening areas such as compliance. Chief Executive Officer Paolo Ardoino has stated that by mid-2025, the company plans to have around 200 employees on board. This move comes as Tether looks to consolidate its position in the market and ensure efficient management of the $118 billion in assets backing USDT.
Despite its relatively small team, Tether has managed to achieve significant financial success, with a net operating profit of $1.3 billion in the second quarter of 2024. Ardoino emphasized the company’s commitment to remaining lean and flexible, attributing their success to the strategic hiring of senior staff. This approach has allowed Tether to operate effectively in a competitive market dominated by major players like Binance and Coinbase.
Investment Strategy and Caution
In recent years, Tether has also ventured into strategic investments, including partnerships with companies like Northern Data Group and Bitdeer Technologies Group. However, Ardoino has expressed caution about expanding the workforce too quickly, citing concerns about the potential impact on employees in the event of market downturns. Tether’s measured approach to growth reflects a commitment to sustainable business practices and employee well-being.
One area of focus for Tether is monitoring potential illicit activities involving USDT on secondary markets, such as trading on exchanges and OTC desks. To address these challenges, the company has invested in automated tools for enhanced surveillance. Tether has faced scrutiny over the illicit use of USDT, including reports of its involvement in evading sanctions by Russian arms smugglers. In response, Tether has collaborated with blockchain surveillance firm Chainalysis to strengthen its compliance efforts and detect illicit transfers.
Tether’s plans for expansion and investment present both opportunities and challenges for the company. By maintaining a lean and strategic approach to hiring, Tether aims to sustain its growth trajectory while mitigating risks associated with market volatility and regulatory scrutiny. As the stablecoin market continues to evolve, Tether’s ability to adapt to changing dynamics will be crucial in ensuring its long-term success and credibility in the industry.