Tether is enhancing its transparency efforts for its stablecoin through a significant new hire.
On July 15, Tether announced the appointment of Philip Gradwell, previously the chief economist at Chainalysis, as its new head of economics.
In his role, Gradwell will focus on quantifying and communicating the usage of Tether’s USDT to regulators and stakeholders.
After a six-year tenure at blockchain analytics firm Chainalysis, Gradwell is set to analyze USDT data globally.
Since 2017, USDT has consistently recorded daily trading volumes in the billions, with the latest 24-hour volume reported at $32.23 billion, according to Messari.
“Many people still view digital assets as a mystery, partly due to the industry’s focus on technology rather than practical use cases,” Gradwell said in a statement.
His goal at Tether is “to shift this conversation toward understanding how digital assets are used in the real economy, and how USDT is supporting dollar hegemony.”
Gradwell’s responsibilities will include engaging with regulators, particularly in the United States. Tether’s interactions with federal agencies have involved both cooperation and scrutiny.
In February 2021, Tether and its sister company, Bitfinex, reached an $18.5 million settlement with the New York Attorney General over allegations that Tether misrepresented the amount of fiat collateral backing its tokens.
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The settlement required Tether to provide quarterly reserve reports for two years and banned it from operating in New York.
Tether has made strides in cooperating with government authorities, including integrating the United States Federal Bureau of Investigation into its platform.
In March, Tether assisted the US Department of Justice in recovering approximately $1.4 million in stolen USDT from an unhosted digital wallet.
According to Tether, Gradwell will play a key role in “enhancing communication with regulatory bodies and stakeholders.”
In recent years, increased government scrutiny of the crypto industry has bolstered USDT’s market share.
The stablecoin now holds a 69% market dominance, with Circle’s USD Coin following. Data from DefiLlama shows USDT’s current market capitalization at $112 billion.
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