Bitmex founder Arthur Hayes recently made a bold prediction that issuers, including leading stablecoin Tether, will eventually go extinct. The reason behind this is that when traditional banks like JPMorgan Chase gain approval from the US Treasury Department to issue fiat-backed stablecoins, Tether’s business model will be undermined.
Cryptocurrency derivatives exchange Bitmex founder Arthur Hayes recently stated in the Unchained podcast that while Tether has positioned itself as an outstanding product in the cryptocurrency market, this is only because the US banking system has refused to provide similar products.
Regarding Tether’s business model, Arthur Hayes pointed out that it is at risk of being replaced by traditional banks. However, Arthur Hayes also stated that without using bank clearing and custody of funds, centralized stablecoins cannot function as they do now. He criticized bank managers as “damn idiots” for providing services to stablecoin companies like Tether but not offering stablecoin services themselves.
In Arthur Hayes’ view, when the US Treasury Department allows traditional banks to issue stablecoins, the era of stablecoin companies like Tether will come to an end, and the legitimacy and reserve backing of traditional banks will not be questioned.
Therefore, Arthur Hayes predicts that banks like JPMorgan Chase will replace Tether and other stablecoin companies.
Meanwhile, while Arthur Hayes warns about Tether’s future, Tether is actively expanding its business. Tether CEO Paolo Ardoino announced in November of last year that Tether plans to invest approximately $500 million in the next six months to build more mining pools and invest in other mining companies, making a major move into the mining field.
According to Tether’s comprehensive reserve report, as of the third quarter of last year, Tether’s total investments in sustainable energy, Bitcoin mining, data, and P2P technology-related fields exceeded $800 million, with an investment amount of $668 million in the third quarter alone.
Paolo Ardoino stated in October of last year that Tether’s USDT will still be a key product, and Tether will remain focused on the growth of USDT. However, the company is also expanding into new areas, and Tether will soon announce a real-world asset (RWA) platform called “Real World Ecosystem” (RWE).
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