Tether CEO Defends Stablecoins Against BIS Tokenized Deposit Claims

Tether chief executive Paolo Ardoino publicly challenged recent comments from the Bank for International Settlements (BIS) that favor tokenized bank deposits over stablecoins. Ardoino argued that stablecoins, particularly USDT, offer a higher level of safety because they are fully backed by U.S. Treasury securities, whereas tokenized deposits typically rely on a much smaller liquid‑asset cushion.

Key Points of the Dispute

• Ardoino criticized BIS General Manager Pablo Hernandez de Cos for describing stablecoins as ineffective fiat substitutes due to perceived redeemability, supply, interoperability, and crime concerns.
• The BIS promoted tokenized bank deposits as a “more direct path” to tokenisation while preserving monetary foundations.
• Ardoino countered that stablecoins are “almost fully backed” by U.S. Treasuries, while tokenized deposits are usually only 10% collateralized by liquid assets.

Stablecoin Adoption and Market Size

USDT, Tether’s flagship stablecoin, has a market capitalization exceeding $183 billion. Ardoino highlighted its significant role in emerging economies, where it is used for both domestic and cross‑border commerce.

Regulatory Context

The debate intersects with the U.S. Digital Asset Market Clarity Act (referred to as the CLARITY ACT). Some community banks express concern that the legislation could trigger a shift of deposits toward stablecoins if crypto exchanges are permitted to offer related rewards.

Outlook

Ardoino suggested that a broader recognition of stablecoins’ safety could lead to substantial migration of savings from traditional bank products to assets like USDT, potentially reshaping aspects of the financial system.