Updated on:12/02/2025 05:54 PM 
Tether is fully prepared for any market challenges that may arise, Chief Technology Officer Paolo Ardoino told CryptoSlate at the City Blockchain Week Conference.
In this exclusive interview, Ardoino explained how Tether has strategically reduced its commercial paper debt with U.S. Treasuries and conducts weekly assessments of its portfolio's viability. The company regularly runs stress tests to evaluate its ability to process redemptions even in scenarios comparable to the global financial crisis of 2008.
Ardoino emphasized that Tether has never rejected a redemption request and expressed confidence that the company's stablecoin team represents the industry's finest. He elaborated:
“We consider the most challenging moments in financial history... when we need to simulate what a bank run scenario would look like for Tether's portfolio.”
Ardoino detailed how recent interest rate increases in the U.S. have prompted Tether to reduce its commercial paper holdings by 30% and replace them with U.S. treasuries.
The company's commercial paper holdings have been the subject of intense debate within the cryptocurrency community, with some analysts suggesting potential connections to Chinese real estate businesses. The addition of commercial paper, described as a “cash equivalent,” will likely be welcomed news among Tether skeptics.
U.S. treasuries are held by foreign nations including China, Japan, and the U.K., as well as by mutual funds, pension funds, insurance companies, and various state and institutional accounts. They are widely regarded as extremely secure assets since the probability of the U.S. defaulting on its debt remains low with its AAA credit rating.
However, some rating agencies have downgraded the U.S. outlook, with S&P Global Ratings still maintaining only an AA+ rating. Furthermore, S&P Global Ratings predicts an upcoming downturn with a 3% decrease in VALUE in 2022.
S&P Global also warns of potential additional rating reductions if “unexpected negative political developments impact the effectiveness of federal institutions or threaten the nation's position as the world's leading reserve currency.”
Ardoino states that should the U.S. begin printing excessive money, then hypothetically:
“If it costs a million dollars for a loaf of bread then it would cost a million USDT for a loaf of bread.”
The USDT / dollar peg will be maintained even if the U.S. experiences hyperinflation. Ardoino clarified that an effective hedge against the dollar isn't to avoid USDT but rather to invest in either Tether Gold or Bitcoin.
