Ardoino: 650M users decentralize US debt; Tether holds Treasuries

In an Aug. 31 interview, Tether CEO Paolo Ardoino stated that 650 million people had “decentralized” U.S. debt by holding USDT. Tether International retains legal ownership and control of the Treasury reserves that back the stablecoin, and the 650 million figure is a company estimate.

Ardoino argued that widespread individual holdings reduce concentration risk because many small holders are unlikely to coordinate a simultaneous sale in the way a single large foreign holder might.

The 650 million count comes from Tether’s internal figures. In an Aug. 13 audit announcement the company reported more than 650 million users across emerging markets rely on Tether daily. Tether’s user estimates combine on‑chain address counts with estimates for accounts held through centralized services; its methodology notes that one person can control multiple wallets.

Tether’s public legal materials distinguish token ownership from reserve ownership. The company’s terms describe a redemption right as a personal contractual claim available only to eligible, verified customers. Tether International states it owns the reserve assets and manages their composition at its sole discretion, holding most assets through banks and licensed financial institutions.

Tether’s Financial Figures and Reserves Report records issued USDT as refund liabilities at their contractual redemption value and lists the reserves as assets of Tether International.

The Relevant Information Document says eligible redemptions are paid in fiat at face value less applicable fees and that holders are not entitled to increases in reserve value above face value. Direct redemptions require customer verification and Tether’s approval. The fee schedule sets a $100,000 minimum for direct acquisition or redemption and charges the greater of $1,000 or 0.1%.

Tether reserves the right to delay or suspend services, including redemptions, in cases involving suspected illicit use, legal obligations, government directions, investigations, unauthorized access or other risks the company considers unacceptable.

USDT remains tradable on secondary markets and many holders exit by selling tokens on exchanges or through dealers. Secondary‑market sales transfer tokens to other buyers rather than directly reducing Tether’s outstanding liabilities. Public materials therefore establish an issuer liability and a contractual redemption right for eligible customers, but not a uniform claim for every secondary‑market holder in every jurisdiction or a pro rata beneficial ownership of the underlying Treasury securities.

Reserve exposure reported by Tether is large. As of June 30, Tether International reported $187.751 billion in reserve assets against $183.642 billion in liabilities, including $114.961 billion of direct U.S. Treasury bills and $18.626 billion of overnight reverse‑repurchase exposure collateralized by about $18.596 billion of Treasuries. Directly owned bills and Treasuries posted as repo collateral carry different legal statuses.

Ardoino characterized USDT issuance as creating ‘the decentralized ownership of the US debt’ and described holders as ‘basically holding some US Treasuries.’