Tether CEO criticises analysts from JPMorgan
Tether CEO Paolo Ardoino has pushed back on a recent JPMorgan report analyzing Tether’s reserves and regulatory compliance, asserting that the firm’s financial strength is vastly underestimated.
In a statement to The Block, Ardoino dismissed JPMorgan analysts as “salty” for failing to account for Tether’s robust group equity of over $20 billion and its quarterly profit of more than $1.2 billion generated through U.S. Treasuries, reports The Block.
Defending Tether’s Financial Resilience
JPMorgan analysts have estimated that only 66% to 83% of Tether’s reserves currently meet the requirements of proposed U.S. stablecoin regulations. They suggested that Tether might be forced to divest some assets—including bitcoin, corporate debt, and secured loans—in favor of more liquid instruments like U.S. Treasuries. However, Ardoino refrained from confirming whether any Bitcoin sales might be necessary. Instead, he pointed to his recent X post, noting, “Tether analysts say that JPM does not have enough Bitcoin.”
Tether’s reserves include approximately 83,758 bitcoin, valued at over $8 billion, and the company announced in 2023 that it would allocate up to 15% of its quarterly profits to purchasing bitcoin. Ardoino further quipped, “Those analysts at JPMorgan seem a bit jealous that they didn’t buy Bitcoin cheap and make them salty. But clearly they don’t understand either Bitcoin nor Tether. And they won’t have a cheap event to buy Bitcoin. No one feels sorry for them.”
Regulatory Hurdles and Industry Outlook
The report comes as U.S. lawmakers consider two stablecoin bills—the STABLE Act in the House and the GENIUS Act in the Senate—which aim to impose licensing, risk management, and 1:1 reserve backing requirements on stablecoin issuers. These measures, expected to be enacted later this year, could force Tether to adjust its reserve composition. Ardoino noted that Tether is “closely monitoring the evolution of the different U.S. stablecoin bills” and is actively engaging with local regulators, though it remains unclear which proposal will prevail.
As the U.S. regulatory landscape for digital assets continues to evolve, Tether’s robust earnings and diversified reserve strategy may provide the company with a buffer against potential regulatory challenges.
Recently we wrote, that JPMorgan analysts have raised concerns that Tether, the issuer of the USDT stablecoin, may need to adjust its reserve holdings to align with forthcoming U.S. stablecoin regulations.
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