Paolo Ardoino: “Winning Is a Marathon, It’s Not a Sprint”

Notable Facts about Paolo Ardoino:

• Born in 1985 in Liguria, Italy.
• Graduated from a science-focused high school (Liceo scientifico).
• Holds a bachelor’s degree in Computer Science from the University of Genoa.
• CTO of Bitfinex.
• Founder of the P2P application platform Holepunch.
• CEO of Tether.
• Married to Claudia Lagorio, COO of Bitfinex 

How a Boy from Genoa Became the CEO of Tether

Many regard Paolo Ardoino merely as a talented manager, but he truly is a genius—a boy from Genoa who began coding at a very young age. During an interview, he reflected on his journey:

I’m a developer since basically this year would be 30 years, so I’m 38. I started coding at a really young age. That’s the only thing that I have basically been doing all my life since I studied Math, applied to computer science. Being Italian, I think that many Italians can relate that there is no job in Italy. So especially if you are a developer, you are paid a really low salary, even though, of course, the software developer role is growing in importance and has been growing in importance for the last 20 years. And so I like many started looking at other opportunities and started to learn about finance. I built a startup* in London with a few other teammates that would deliver cloud-based financial services. We had hedge funds in the city as our customers.

*This startup is known as Fincluster.

Between 2011 and 2013, Paolo was deeply involved in numerous research projects in cybersecurity and cryptography, many under NATO contracts. His career trajectory took a dramatic turn after he encountered the Bitcoin White Paper, compelling him to dedicate his efforts to the burgeoning field of “new money,” unencumbered by regulatory constraints.

In 2014, Ardoino met John Carlo, the CFO of Tether, and joined his team as a senior software developer at Bitfinex, a then-little-known e-commerce platform for Bitcoin transactions. Within a few years, Bitfinex evolved into a renowned, multifunctional cryptocurrency exchange. Ardoino was instrumental in this transformation, leading the development and maintenance of the platform’s server-side, crafting a robust trading engine, expanding the system, and enhancing the user interface. His significant contributions and relentless drive were recognized in 2017 when he was appointed Chief Technical Officer at Bitfinex, and in 2023, he was named the new CEO* of Tether, the issuer of the leading stablecoin, USDT. 

*Jean-Louis van der Velde, who previously held this position at Tether, stepped down and became a financial advisor.

Simultaneously holding two executive roles, Ardoino now manages both a trading platform and a suite of stablecoins.

In 2023, under his leadership, Tether generated a profit of $6.2 billion, primarily from interest on client collateral.

Notably, Ardoino currently holds a 20% stake in the company.

What Financial Principles Guide the CEO of Tether?

Paolo Ardoino possesses two distinct qualities that have enabled him to generate billions for himself and his company: cautious foresight and thriftiness. 

His prudence shone brightly in 2022 during the FTX collapse. As reported by Forbes, in early November 2022, Sam Bankman-Fried approached Ardoino for help. Despite FTX and Alameda being among Tether's biggest clients, Ardoino refused to assist. Quickly assessing the risks, Paolo opted to safeguard his company. He predicted that the fall of SBF’s empire would trigger unprecedented demands on stablecoins during the panic selling of FTT tokens, and he promptly ordered an increase in reserves. When FTX eventually went bankrupt a few weeks later, USDT remained stable. Its brief deviation from the dollar was less than 3%, and it regained 1:1 parity within a week.Moreover, Ardoino pursues far-sighted investment strategies, notably investing billions in mining capabilities. Tether's investments in renewable energy sources and data centers in Uruguay and El Salvador are among his significant initiatives, reflecting his belief that the future of finance and energy are closely connected. 

Paolo’s frugality is legendary. He always cuts advertising budgets, personally acts as the company's frontman, and believes that in the market, those who avoid frivolous spending on stadiums, sponsorships, and expensive marketing will survive. He is proud that while other crypto companies are now having to lay off staff, Tether is instead expanding its *workforce. 

*The company is well-distributed and currently boasts 280 employees in 55 countries.

So, we have always been a lean company, always focusing on building technological solutions. And our idea is that winning is a marathon, it’s not a sprint. And because the conditions of the world, especially in regulatory volatility and so on, are changing so rapidly and are unpredictable at this moment in time. Also, the geopolitical situation is changing rapidly. Wasting money was not on the table for us and I think it is paying out really well.

Paolo firmly believes that stablecoins, not traditional currencies, are key to assisting people in countries suffering from hyperinflation. His focus is on third-world and economically unstable nations, where he sees Tether as crucial in establishing durable financial infrastructures. For example, in countries like Indonesia, Guinea, Uruguay, and Turkey, USDT has surpassed the more volatile BTC in popularity, justifying the extensive efforts made by Tether’s CEO.