Finst

Tether CEO: 'JPMorgan doesn't understand Bitcoin'

Paolo Ardoino, CEO of Tether, has strongly criticized JPMorgan, America's largest bank.

By Mike Hesp
• 2 min read
Will Hedge Fund Sales Cause Bitcoin to Drop to $70,000?

Paolo Ardoino, CEO of Tether, has strongly criticized JPMorgan, America's largest bank. According to a report from The Block, Ardoino claims that JPMorgan really understands neither Bitcoin nor the workings of Tether. This statement comes after the bank indicated that only 60 to 80 percent of Tether's reserves would comply with two bills currently being discussed in the United States regarding stablecoins. This would mean that the company would have to restructure its reserves.

Ardoino defended Tether by saying that even in the most extreme scenario, JPMorgan is overlooking that Tether Group's equity includes more than $20 billion in other highly liquid assets, and that the company generates more than $1.2 billion per quarter in profits from U.S. Treasury bonds. He added that adapting to new regulations would be "unproblematic" for the company.

Furthermore, speaking to The Block, Ardoino suggested that JPMorgan analysts may be somewhat jealous because they didn't buy Bitcoin at a low price and are now bitter. Tether currently ranks third among cryptocurrencies, just behind Ethereum, with a market capitalization of $141 billion.

JPMorgan, the largest bank in the US, has total assets of $2.6 trillion. According to their CEO, Jamie Dimon, Bitcoin has “no intrinsic value.” In Europe, Tether has also faced regulatory scrutiny over MiCA (Markets in Crypto-Assets) rules, which require major issuers to hold 60 percent of their reserves with banks within the European Union. This has led to Tether's exclusion from several cryptocurrency exchanges in Europe.Despite being a billion-dollar empire, many questions remain unanswered. Tether has thus far never submitted to an independent audit by any of the Big Four, considered the gold standard. "We have approached the Big Four. They don't want to take the risk," Ardoino said. Tether often faces serious accusations, including shady business practices, a favored tool for terrorists and other criminals, and a lack of transparency.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.