In a report published yesterday, US Banking giant JP Morgan expressed concerns about the increasing dominance and rapid expansion of Tether in the stablecoin market, saying that this could be a major risk for the broader crypto market.
JP Morgan analysts underlined Tether's lack of legal compliance and transparency in the report, stating that its increasing concentration is seen as a negative for the stablecoin universe and the general cryptocurrency ecosystem.
Tether CEO Paolo Ardoino's response to JP Morgan's report was immediate.
Speaking to The Block, Tether CEO argued that Tether's growing market dominance is 'negative' for JPMorgan, which competes with them in the stablecoin space, but is not negative for the cryptocurrency industry:
“Tether's market dominance may be a 'negative' for competitors, including those wishing for similar success in the banking industry, but it has never been a negative for the markets that need us most.
We have always worked closely with global regulators to educate them about the technology and provide guidance on how to think about it.
I think it is a happy development that JPMorgan put Tether and USDT on its agenda and accepted the importance of Tether technology.
However, I see it as hypocritical for JPMorgan, one of the world's largest banks, to talk about concentration.”
*This is not investment advice.