Tether, the stablecoin issuer behind USDT, has announced plans to double its workforce within the next year. The company aims to bolster areas such as compliance by increasing its headcount to approximately 200 employees by mid-2025. This move comes as Tether looks to strengthen its finance department, which manages the $118 billion in assets backing USDT. Despite its impressive growth and net operating profit of $1.3 billion in the second quarter of 2024, Tether currently operates with a relatively small team compared to major crypto exchanges like Binance and Coinbase.
Caution in Expansion
CEO Paolo Ardoino expressed caution about expanding the workforce too quickly, citing the unfair practice of hiring during bullish market periods only to lay off employees during downturns. Tether’s strategic approach to hiring focuses on bringing in senior professionals to maintain flexibility and efficiency within the organization. Ardoino emphasized the importance of responsible growth and mentioned the company’s investment activities in companies like Northern Data Group and Bitdeer Technologies Group, which are managed by a team of just 15 people.
Compliance and Risk Management
In response to concerns about illicit use of USDT on the secondary market, Tether has implemented enhanced monitoring tools and partnerships to ensure compliance with global regulations. The company has faced scrutiny over USDT’s potential involvement in illicit activities, such as evading sanctions and terrorist financing. To address these issues, Tether has collaborated with blockchain surveillance firm Chainalysis to detect and prevent suspicious transactions involving its tokens. The goal is to identify and mitigate risks associated with unauthorized or illegal use of USDT, reinforcing Tether’s commitment to regulatory compliance.
Tether’s decision to expand its workforce signals a proactive approach to strengthening compliance measures and risk management practices. By investing in talent and resources to support its growing operations, Tether aims to maintain its position as a leading player in the crypto industry while upholding the highest standards of regulatory compliance. As the company continues to navigate evolving regulatory landscapes and market dynamics, its focus on responsible growth and ethical business practices will be essential for long-term success and sustainability.
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