Tether Holdings is exploring potential expansion in the United States following a strong year of profits and a shift in the political landscape favoring crypto.
Per a Bloomberg report, the company’s interest in the U.S. market coincides with the election of pro-crypto President Donald Trump and Tether’s substantial investments in high-profile companies.
While the CEO of the world’s largest stablecoin issuer, Paolo Ardoino, acknowledged U.S. opportunities, he emphasized a cautious approach, citing the need for clearer regulatory guidelines.
Increased Investments and US Opportunities
Notably, Tether’s record-breaking $10 billion profits in 2024 have strengthened its ability to invest in diverse ventures. The company recently allocated $775 million to acquire a stake in Rumble Inc., a U.S.-listed video-sharing platform.
Ardoino noted that these investments create an opportunity to reassess the U.S. regulatory environment and evaluate the potential for a greater presence in the country. However, the company remains cautious, prioritizing regulatory clarity before making definitive moves.
It is also important to note that Tether’s U.S. Treasury holdings are currently managed by Cantor Fitzgerald LP, whose CEO, Howard Lutnick, is expected to join the Trump administration.
This connection may influence Tether’s strategy as the company prepares to enhance its lobbying efforts. In September, Tether hired Jesse Spiro, a former PayPal executive, to lead its government relations. Notably, Tether has already been among the top spenders on U.S. crypto lobbying in recent years.
Regulatory Challenges Facing Tether
Despite its growth, Tether has faced significant regulatory hurdles in the U.S. In 2021, the company settled allegations from U.S. authorities for $41 million over claims it misrepresented its reserves. Though Tether neither admitted nor denied the allegations, the incident underscored challenges in the region.
More recently, reports suggested the company was under investigation in New York for potential violations of sanctions and anti-money-laundering regulations. Ardoino denied awareness of such inquiries.
Global Expansion and New Headquarters
While weighing its U.S. prospects, Tether is establishing a global headquarters in El Salvador, which has embraced cryptocurrency. The firm plans to relocate its incorporation and its subsidiaries to the Central American country.
Tether’s parent company, iFinex Inc., will also shift its base to El Salvador. Initial hiring from locals will focus on tens of employees, with projections to grow the workforce into the hundreds.
Additionally, the company is finalizing plans to construct Tether Tower, a skyscraper set to be built either in central San Salvador or nearby.
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