Source: Anthony Pompliano Podcast
Compiled by: Felix, PANews
Bo Hines, CEO of Tether USAT (a US-regulated, USD-backed stablecoin launched by Tether), is also a former White House cryptocurrency advisor who participated in shaping US digital asset policy during a critical period of industry development.
Recently, Bo Hines was interviewed live at the New York Bitcoin Investor Week, disclosing details of his work on cryptocurrency policy at the White House and discussing topics such as the adoption of stablecoins and why user experience is more important than yield.
PANews has compiled the highlights of the conversation. Details are below.
Host: You previously worked at the White House and are now the CEO of Tether USAT. When I think about your importance in the crypto industry, there are a few major events linked to you. One of them is your push to complete the Bitcoin Strategic Reserve. You secured a lot of "clarity" (a pun referring to the Clarity Act) in the current administration's crypto policy. Talk about your experience handling crypto affairs at the White House. How did you view your achievements when you left to join Tether?
Bo Hines: That was a very enjoyable time. With David's involvement, our mission was to move at "tech speed" (fast), and I think we did. Patrick was the deputy at the time and has now taken over my previous position. We tried to accomplish as much as possible at lightning speed. Given the nature of the political cycle, we felt we had to seize the momentum early, and we did. The biggest question we faced at the time was: which bill to advance first? It was a debate between the Genius Act and the Clarity Act.
Obviously, we successfully got the Genius Act passed last July, but the debate over the Clarity Act continues. We established the strategic Bitcoin reserve through an executive order. Additionally, the President's Digital Asset Task Force report was released; this report is the most comprehensive digital asset regulatory framework ever.
With the Genius Act, stablecoin regulation provided the necessary on-ramps and off-ramps to achieve the long-desired 24/7 market. I enjoyed my time there. After the Genius Act passed, I felt it was time to leave. On that bill, I somewhat played the role of a "bulldozer," so it was good to have a new face for the next phase. After the bill was released, I decided to step down, which led me to become the CEO of USAT.
Host: Speaking of the Clarity Act, everyone is watching to see if it will pass. Someone said yesterday the probability is 60%. How important is it for the industry? Could everyone still do fine if it doesn't pass?
Bo Hines: I think it is extremely important. It is the final piece of the overall puzzle. I think the probability of passage is between 80% and 90%. Now it's just down to finalizing some minor details. The biggest disagreement is over the user experience (UX) structure.
The media keeps talking about the battle over Yield between banks and crypto natives. I really think this is not a battle over yield, but a battle over user experience. That is, whether you must be an OCC (Office of the Comptroller of the Currency) chartered bank and whether you must have a separate platform to pass yield on to customers. This really only involves one particular player in the industry. Most people in the crypto space have reached a consensus now, and banks are also beginning to realize that the adoption of stablecoins is a fait accompli, and integration is about to begin. I believe David and Patrick will find the perfect balance.
Host: Talk about USAT and what you are doing.
Bo Hines: Tether is undoubtedly a key player in the crypto ecosystem. We now have about 530 million customers, growing by about 30 million per quarter. We are the world's 13th largest holder of gold. At the same time, internally, Tether is firmly Bitcoin Maximalists (Bitcoin Maxis). It's a very unique company: only 300 employees, with 2025 profits reaching $10 billion. In the new world set by the Genius Act, we decided to launch a US stablecoin product compliant with the Genius Act standards to serve institutions.
Our goal is to leverage these 530 million global users to connect emerging markets with US capital markets. Tether is not just a stablecoin company; it is also an active investor in the technology sector, with investments ranging from robotics to infrastructure. For those who deeply love Bitcoin, the integration of stablecoins is a huge positive because it provides an on-ramp/off-ramp, allowing people to buy and sell assets like Bitcoin more efficiently.
Host: Saying Tether is a major tech investor is an understatement. Every time I talk to Paulo, I learn about the latest developments with brain-computer interface companies and all sorts of other projects. Please briefly describe, what are the benefits of building these channels? What are the goals that US institutions currently cannot achieve due to technological gaps? Or, how do you pitch these channels to these institutions?
Bo Hines: Moving money in the US is still very inefficient. Our payment channels are 95% more efficient than the rest of the world, but they are not cost-effective and are limited by time windows for large transfers.
The adoption of stablecoins will completely change this. From a settlement perspective, whether intra-bank or inter-bank, this would allow, for example, a bank in Korea to participate in the US capital market on a Friday afternoon (after close) because there is a settlement mechanism.
The competition now is about infrastructure. You have to build blockchains that can support this scale and are low-cost. The adoption of stablecoins on the institutional side can save costs for banks and merchants. The settlement cycle changes from T+2, T+1 to T+0.
For consumers, it is an excellent remittance tool. In the future, you might see payroll companies paying salaries directly in stablecoins. You could program it: 10% of the daily salary automatically sent to Latin America or Asia. Our goal is to significantly change this cost structure in the coming years.
Host: Talk about stablecoin yield; there's a lot of debate and trade-offs there.
Bo Hines: Regarding the yield issue, Tether remains neutral. Because our business model is not based on distributing yield; we provide the deepest liquidity and the best distribution capabilities. Our market cap is about $185 billion.
The core of this issue is: Can you simultaneously be a broker, an exchange, and a bank? Some call this "shadow banking," which is also why the banking industry is starting to get nervous and wants to protect its turf. The solution is simple: obtain an OCC charter. Then you can share yield with customers like a bank. Currently, the OCC is moving very quickly in granting bank charters to crypto-native companies.
Host: What other financial services do you plan to offer these 530 million users?
Bo Hines: I believe there will be large-scale public chain and stablecoin integration in the next 5 to 10 years. Tether is developing a WDK (Wallet Development Kit). We believe controlling the customer's on-ramp is extremely important. You will see various financial services packaged into these wallets. Tether's mission for the past 7 years has been to provide access to financial tools for those who cannot directly obtain them.
Host: You mentioned again that you are Bitcoin minimalists. Specifically, how does Tether support Bitcoin?
Bo Hines: We love Bitcoin. Bitcoin is part of our reserves. We are deeply involved in Bitcoin mining, trading, and ecosystem development. Stablecoins are the "first step" for people to接触 (contact) Bitcoin. Once users become familiar with on-chain transfers, the next step is often to choose Bitcoin as their investment of choice. With the adoption post-Genius Act, stablecoins will become the starting point for people entering the world of digital assets. We are already seeing US banks allowing their wealth managers to allocate Bitcoin positions for clients. Mass adoption is just beginning.
Host: What about Tether's transparency and reserves?
Bo Hines: Tether's reserves currently consist mainly of US Treasury bonds, gold, and Bitcoin. Currently, Tether is the 17th largest holder of US Treasury bonds (including all sovereign nations) and plans to enter the top 10 this year. We are increasing the proportion of US Treasury bonds in our reserves to comply with the Genius Act's compliance standards.
Host: What are your concerns for the future?
Bo Hines: Privacy issues. This is something users desire, but it also needs to satisfy regulators. How to utilize this technology while protecting privacy will be an important topic in the coming years.
Host: What are the differences and synergies between USAT and the international version of Tether?
Bo Hines: Our goal is to achieve interoperability between the products. The international version of Tether (USDT) is the issuer, while the US product (USAT) is issued through Anchory Digital Bank, a fully OCC-regulated US bank.
The reserves for the two are separate, but we can use technical means to make the experience seamless for users. Whether through issuer or exchange liquidity pools, we are confident in making this cross-border movement smooth.
Related reading: 29-year-old crypto nouveau riche Bo Hines: From White House crypto "liaison" to swiftly becoming the helm of Tether's US version stablecoin
