Tether has announced a strategic move to enhance transparency regarding USDT usage by appointing Philip Gradwell as its new head of economics.
Improving Transparency in Stablecoin Usage
On July 15, Tether revealed its plan to increase transparency on stablecoin usage with the appointment of Philip Gradwell. As the market for digital assets, including Bitcoin (BTC), ETH, and Ethereum Spot ETF, continues to evolve, Gradwell, formerly the chief economist at Chainalysis, is allegedly tasked with quantifying and communicating Tether’s USDT (USDT) usage to regulators and stakeholders.
Philip Gradwell brings six years of experience from blockchain analytics firm Chainalysis. According to news sources, his new role at Tether will involve examining USDT data worldwide. Since its inception in 2017, USDT has achieved daily trading volumes in the billions of dollars. According to Messari data, USDT’s trading volume over the past 24 hours was $32.23 billion.
Gradwell highlighted the need for a greater understanding of digital assets in his statement: “Many people still view digital assets as a mystery, partly due to the industry’s focus on technology rather than practical use cases,” he said. His goal at Tether is “to shift this conversation toward understanding how digital assets are used in the real economy, and how USDT is supporting dollar hegemony.”
Engagement with Regulators
Reports say that a significant part of Gradwell’s responsibilities will be engaging with regulators, particularly in the United States. Tether has had a history of both cooperation and scrutiny with federal agencies. In February 2021, Tether and its sister company, Bitfinex, settled with the New York Attorney General for $18.5 million over allegations that Tether misrepresented the amount of fiat collateral backing its tokens. As part of the settlement, Tether agreed to provide quarterly reports on its reserves for two years and was banned from operating in New York. This settlement marked a turning point, emphasizing the need for ongoing transparency and compliance in the face of regulatory challenges to maintain Tether’s position and credibility in the market.
In addition, one of Tether’s recent initiatives to cooperate with the government allegedly includes onboarding the United States Federal Bureau of Investigation to its platform. In March, Tether also assisted the US Department of Justice in recovering approximately $1.4 million in stolen USDT from an unhosted digital wallet.
Tether has stated that Gradwell will be instrumental in “enhancing communication with regulatory bodies and stakeholders.” This move is part of Tether’s broader strategy to improve transparency and build trust with regulators and the public.
USDT Usage Reports and Market Dominance
Government scrutiny of the crypto industry in recent years has played a role in boosting USDT’s market share. Currently, USDT holds a 69% dominance in the stablecoin market, with Circle’s stablecoin, USD Coin (USDC), following behind. This dominance depicts the significant trust and reliance on Tether within the crypto community. According to data from DefiLlama, USDT’s market capitalization stands at $112 billion, reflecting its critical role in providing liquidity and stability in the often volatile cryptocurrency markets. This market position highlights the importance of transparent USDT usage reports for maintaining confidence among users and regulators.
Conclusion
With Philip Gradwell at the helm of its economic strategy, Tether aims to enhance its transparency regarding USDT usage. His expertise in blockchain analytics is expected to provide valuable insights into how USDT is utilized globally and how it supports the broader financial ecosystem.
Gradwell’s appointment is a strategic move by Tether to reportedly improve its relationship with regulators and stakeholders, ensuring that USDT continues to play a significant role in the digital economy. As USDT usage reports become more transparent, stakeholders will gain a clearer understanding of the stablecoin’s impact on the market and its role in supporting dollar hegemony.
