Tether Plans to Double Workforce to Enhance Compliance and Finance Departments
Tether, the stablecoin issuer, is aiming to expand its team significantly within the next year to fortify key areas like compliance and finance. By mid-2025, the company responsible for the USDT stablecoin is looking to increase its workforce to around 200 employees, as mentioned by CEO Paolo Ardoino.
Expansion Strategy of Tether
Despite having a relatively small team, Tether has become a significant player in the financial realm, generating a net operating profit of $1.3 billion in the second quarter of 2024, largely due to its popular stablecoin. This expansion plan puts Tether in alignment with major cryptocurrency exchanges such as Binance and Coinbase, which have larger workforces.
“We are very proud of the fact that we are very lean and we want to remain lean because we want to be flexible. We are very careful when we hire people, we hire only senior people,” Ardoino mentioned in an interview with Bloomberg on August 8th.
Over the past couple of years, Tether has also made strategic investments in companies like Northern Data Group and the US-listed miner Bitdeer Technologies Group. As of now, just 15 individuals manage these investments, indicating a cautious approach to expanding the team rapidly.
“There is nothing that I hate more than all those companies, especially Silicon Valley companies, that hire hundreds of people during the bull runs to fire them as soon as there is a downturn in the market. That I think is one of the most unfair things you can do to employees,” expressed Ardoino.
Increased Scrutiny on USDT Usage
With the rise in usage of USDT on the secondary market, Tether is intensifying its monitoring efforts to detect any potential illicit activities, such as trading on exchanges and over-the-counter (OTC) desks. Despite being primarily used for direct transactions with Tether, USDT has faced criticism for its misuse, including reports of Russian arms smugglers evading US sanctions by utilizing the stablecoin.
Tether, however, continues to emphasize its collaboration with global authorities to combat illegal exploitation of USDT. In May, the company teamed up with Chainalysis, a blockchain surveillance firm, to boost the monitoring of transactions involving its tokens on secondary markets, enhancing its compliance measures to safeguard against unlawful activities like terrorist financing and sanction violations.
Hot Take: Tether’s Ambitious Workforce Expansion
As Tether sets its sights on doubling its workforce to strengthen compliance and finance functions, the stablecoin issuer aims to solidify its position in the cryptocurrency market. This strategic move not only demonstrates Tether’s commitment to regulatory compliance but also underscores its dedication to enhancing financial oversight within its operations. By investing in human capital and strategic partnerships, Tether is laying the foundation for sustained growth and stability in the ever-evolving crypto landscape.
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