London, 15 July 2024 – Tether has announced the appointment of Philip Gradwell, the former chief economist at Chainalysis, as its new head of economics. This strategic move aims to increase transparency and provide detailed reports on USDT usage to regulators and stakeholders.

Enhancing Transparency and Communication

Philip Gradwell, who spent six years at blockchain analytics firm Chainalysis, will now focus on quantifying and communicating Tether’s USDT usage. His role will involve analyzing global USDT data, with the stablecoin having consistently recorded daily trading volumes in the billions. According to Messari data, the volume over the past 24 hours was $32.23 billion.

Gradwell aims to shift the narrative around digital assets from a technology focus to practical use cases. “Many people still view digital assets as a mystery,” he stated,

“My goal at Tether is to shift this conversation towards understanding how digital assets are used in the real economy, and how USDT is supporting dollar hegemony.”

Strengthening Regulatory Cooperation

A significant aspect of Gradwell’s role will be engaging with regulators, particularly in the United States. Tether’s relationship with U.S. federal agencies has seen both cooperation and scrutiny. In February 2021, Tether and its sister company Bitfinex settled with the New York Attorney General (NYAG) for $18.5 million over allegations of misrepresenting the amount of fiat collateral backing its tokens. As part of this settlement, Tether agreed to provide quarterly reserve reports for two years and ceased operations in New York.

Source: Paolo Ardoino

In March 2024, Tether collaborated with the Federal Bureau of Investigation (FBI) and assisted the U.S. Department of Justice (DOJ) in recovering approximately $1.4 million in stolen USDT from an unhosted digital wallet.

Tether believes that Gradwell will play a crucial role in enhancing communication with regulatory bodies and stakeholders, thereby reinforcing the company’s commitment to transparency.

USDT’s Market Position

Despite increased government scrutiny of the crypto industry, Tether’s market share has grown significantly. USDT now commands a 69% dominance in the stablecoin market, followed by Circle’s USDC. Data from DefiLlama indicates that USDT’s current market capitalization is $112 billion.

Tether’s latest move to onboard a seasoned economist like Gradwell is expected to bolster its efforts to maintain and expand its market leadership while ensuring regulatory compliance and transparency.