Tether Eyes U.S. Expansion and Global HQ in El Salvador Amid Record Profits
Tether Holdings Ltd., the issuer of the world's largest stablecoin, USDT, is considering expanding its presence in the United States while simultaneously establishing a global headquarters in El Salvador. This ambitious move follows a year of record profits for the company, fueled by surging cryptocurrency markets and strategic investments.
Riding the Crypto Wave: Profits Soar on Treasury Holdings and Strategic Investments
Tether's USDT, backed by a $137 billion reserve primarily composed of cash and cash equivalents like U.S. Treasury securities, has become a cornerstone of the crypto market. The combination of rising interest rates and a crypto market rally in 2024 has significantly boosted Tether's profitability.
The potential for a more favorable regulatory environment in the U.S., coupled with Tether's recent $775 million investment in the U.S.-listed video-sharing platform Rumble Inc., has sparked discussions about a potential expansion in the country. "I cannot exclude Tether moving a bit more toward some US presence," Ardoino stated, emphasizing the need for regulatory clarity before making any definitive moves.
Lobbying Efforts and Past Regulatory Challenges
Tether has also been actively lobbying in the U.S., hiring former PayPal executive Jesse Spiro to lead government relations in September. Historically, the U.S. has been a challenging market for Tether. The company, which maintains it does not serve U.S. customers, settled with U.S. authorities in 2021 for $41 million over allegations of misrepresenting its reserves, without admitting or denying the allegations.
El Salvador: A New Home for the Stablecoin Issuer
Beyond the U.S., Tether is making a significant commitment to El Salvador. The company plans to establish its global headquarters in the Central American nation, with initial plans to hire dozens of employees, potentially growing to hundreds in the future. A location for a new "Tether Tower" skyscraper is currently being scouted in or around San Salvador.
Diversifying Beyond Stablecoins: Billions Invested in Tech and Agriculture
In addition to its core stablecoin business, Tether has been diversifying its investments, pouring billions into companies like Rumble, German technology firm Northern Data AG, and dairy farming firm Adecoagro SA.