Tether's Transformation: From Regulatory Dodge to FBI Partner

Paolo Ardoino spent years avoiding the United States. Now he can't stop talking to American media.

The Tether CEO launched a full-scale press blitz this week, speaking with Fortune, Bloomberg, Reuters, and TechCrunch. The timing wasn't arbitrary. Tether just launched USAT, its first U.S.-regulated stablecoin designed to compete directly with Circle'sUSDC. Meanwhile, Fidelity launched its own stablecoin Wednesday, joining JPMorgan and PayPal in an increasingly crowded race.

But there's more to this story than product launches. With Howard Lutnick now Commerce Secretary and Cantor Fitzgerald managing Tether's reserves, Ardoino is seizing a unique moment to reposition his company from crypto pariah to financial infrastructure.

From Money Laundering Accusations to FBI Collaboration

For years, Tether was portrayed as opaque, possibly fraudulent, and according to The Economist last summer, a "money launderer's dream." Regulators circled while prosecutors investigated. Ardoino watched from offshore, his company's $187 billionUSDT growing despite—or perhaps because of—its outsider status.

That narrative is changing fast. Tether now meets with White House officials, collaborates with the FBI and Secret Service, and has frozen $3.5 billion in tokens at law enforcement's request. The company works with almost 300 law enforcement agencies across more than 60 countries.

"We have onboarded the FBI and the Secret Service. We follow OFAC," Ardoino tells me from Tether's Lugano office. When The Economist detailed how Russian money launderer Ekaterina Zhdanova allegedly used Tether to connect British drug gangs and Moscow hackers, Ardoino brushes it off as "truly a drop in the ocean."

His argument goes further: blockchain transparency makes Tether superior to cash for law enforcement. "If there are cash pallets of hundreds of billions of dollars roaming around the world, U.S. law enforcement can hardly do anything about it," he says. "But with USDT, we demonstrated that working with the DOJ, FBI, Secret Service and hundreds of other law enforcement agencies, we could quickly freeze the funds."

The Stablecoin Wars Heat Up

Tether'sUSDT dominates with 536 million users growing at 30 million per quarter—"more like Facebook rather than any other fintech application," according to Ardoino. Its $187 billion market cap exceeds all stablecoin competitors combined.

But competition is intensifying. Fidelity's entry joins established players like JPMorgan and PayPal, while Circle'sUSDC remains the primary regulated alternative. When I ask Ardoino about Circle—often portrayed as the cleaner choice—his PR team quickly intervenes. He manages only: "Sometimes you are painted in a different light if you don't bend the knee to Wall Street."

The regulatory landscape is shifting too. The CLARITY Act moving through Congress would prohibit stablecoin issuers from paying interest to holders—a move banking groups support to prevent deposits fleeing traditional banks. For Tether, which doesn't share yields, this would simply codify its existing model. For competitors experimenting with rewards, it could eliminate a competitive tool.

Beyond Stablecoins: The Gold Strategy

Ardoino's ambitions extend far beyond USDT. Tether Gold, launched in 2020, now has $2.6 billion in circulation. But the company's total gold strategy is more ambitious: according to Ardoino's Bloomberg interview, Tether holds around 140 tons of gold worth roughly $24 billion, making it one of the world's largest private gold holders.

This diversification reflects a broader transformation. Tether reported more than $15 billion in profit for 2025, derived largely from interest on reserves it doesn't share with token holders. Those reserves are now held at Cantor Fitzgerald, creating a financial interest that exists alongside Lutnick's role shaping U.S. commerce policy.

}