Paolo Ardoino, the new CEO of Tether, is focusing on how to allocate billions of dollars following the company's recent profit surge.

Tether's reserves, totaling $118.5 billion, are primarily held in short-term US government bonds, leading to a reported profit of $5.2 billion in the first half of 2024.

Ardoino stated that Tether intends to reinvest over 90% of its profits into ventures that align with its vision while maintaining its focus on the stablecoin business.

Since Ardoino became CEO in December 2023, Tether has been investing its profits into Tether Evo, its venture investment arm, alongside strengthening the USDT reserve.

Tether Evo has made notable investments, including a majority stake in Blackrock Neurotech, a neural implant technology firm, and funding for Northern Data Group, which supports AI model training.

Ardoino emphasizes the growing importance of scarce assets like Bitcoin and gold due to geopolitical tensions and macroeconomic trends.

He suggests that investing in Bitcoin and gold is a smart strategy for protecting profits against potential future crises.

Ardoino announced plans to double Tether's workforce to 200 employees by mid-2025, focusing on expanding the compliance team to monitor illicit activities involving USDT effectively.

Concerns about Tether's reserve audits persist, with Ardoino noting difficulties in securing audits from major firms due to the current regulatory climate.

Despite its growth, Tether has faced scrutiny, including a $41 million settlement with US regulators in 2021 for misleading statements about its reserve composition.

Tether has not pursued a EU operational license under the new Markets in Crypto-Assets (MiCA) regime, raising questions about its future in Europe.