01 Oct, 2025

Lao Prime Minister Visits US to Strengthen Economic Ties, Seek Tariff Reductions

Prime Minister Sonexay Siphandone concluded a high-level working visit to Washington D.C., United States, from 27 to 30 September, aimed at deepening economic cooperation and pursuing a reduction in tariffs on Lao exports, during which he met with senior US officials, business leaders, and key advocacy groups.Trade Talks on Tariff ReductionsDuring his visit, Prime Minister Sonexay held in-depth discussions with United States Trade Representative Jamieson Greer on advancing ongoing trade negotiations and exploring potential avenues to reduce tariffs. He emphasized Laos’ readiness to further expand trade and investment engagement with the United States, highlighting ongoing domestic efforts to facilitate trade, including potential waivers of import tariffs on US goods, streamlining of non-tariff barriers, and stronger promotion of Lao products abroad. These measures are intended to create a more attractive, transparent environment for bilateral trade, paving the way for deeper economic collaboration.The US Trade Representative welcomed the Prime Minister’s direct engagement, describing the discussions as productive and affirming that the outcomes, particularly on tariff concessions, would be reported to the US President.Background on US-Lao Trade, Investment TiesCurrently, the US imposes a 40 percent reciprocal tariff on imports from Laos, one of the highest rates applied to any trading partner.According to a July report from the National Economic and Social Science Institute, this high tariff reflects the US perception of a trade deficit with Laos. Lao authorities, however, point to a stark discrepancy between the two sides’ trade figures. While US data indicates a 2024 trade deficit of over USD 762 million, Laos’ Ministry of Industry and Commerce reports a modest trade surplus of just over USD 42 million, with Lao exports to the US valued at USD 283.8 million and imports at USD 241.6 million.In addition to official meetings, Prime Minister Sonexay participated in the US-Lao Business Roundtable, where he showcased Laos’ investment potential and outlined government policies to support private sector growth. The Prime Minister encouraged American companies to explore opportunities in Laos, stressing the country’s ongoing reforms to enhance the ease of doing business.Humanitarian Cooperation Supports Economic GrowthBeyond economic discussions, Prime Minister Sonexay met with the advisory committee of Legacies of War, a US-based NGO dedicated to addressing the legacy of unexploded ordnance in Laos.While primarily humanitarian in focus, these discussions also highlighted how removing development barriers, such as UXO contamination, can facilitate greater economic activity in affected areas.Laos and the United States have a long history of cooperation across economic, humanitarian, and development issues, including MIA recovery efforts and UXO clearance programs. The year 2025 marks the 70th anniversary of diplomatic relations between the two nations, while 2026 will celebrate the 10th anniversary of the Comprehensive Partnership, which provides a framework for strengthening ties across economic, political, and people-to-people exchanges.Prime Minister Sonexay’s visit signals a commitment by Laos to resolve trade issues and enhance bilateral economic engagement, with the reduction of tariffs at the forefront of discussions.

25 Sep, 2025

Stablecoin Giant Tether Seeks $500 Billion Valuation – What Challenges Lie Ahead?

Tether, the world’s largest stablecoin issuer, is considering raising $15–20 billion through a private placement, equivalent to about 3% of the company’s equity. According to a Bloomberg report on Wednesday (September 24), citing two people familiar with the matter, such a deal could value Tether at a level comparable to OpenAI.Shortly after the report, Tether CEO Paolo Ardoino confirmed the news on his official X account, stating that the company is “evaluating raising capital from a group of high-profile strategic investors.” He added that the funding would “multiply the scale” of Tether’s existing and new business lines, including stablecoins, distribution and adoption, artificial intelligence, commodities, energy, communications, and media.The financing is expected to take place through the issuance of new shares, without any existing shareholder divestment. Negotiations remain at an early stage, and details such as the exact fundraising amount could still change.Based on a $20 billion raise for 3% equity, Tether’s valuation would approach $500 billion—an unprecedented milestone for a crypto industry company. This would place the company’s valuation on par with global private-sector leaders like SpaceX and OpenAI. Earlier this year, OpenAI was valued at around $300 billion in a separate fundraising round.Tether, once accused of being the “preferred cryptocurrency for criminals,” has been working toward re-establishing its U.S. presence amid former President Trump’s favorable stance toward the crypto industry. Earlier this month, Tether appointed Bo Hines as CEO of its U.S. operations. Hines, a key architect of crypto policy under the Trump administration, helped advance the GENIUS Act. Tether has also set up USAT, a U.S.-focused subsidiary that will operate under the GENIUS Act regulatory framework.Meanwhile, the market capitalization of Tether’s USDT stablecoin has recently surpassed $172 billion, far outpacing its competitors. Circle, the issuer of USDC, holds second place with a market cap of about $74 billion. However, a dominant lead does not mean Tether can rest easy.Tether’s Market Leadership Conceals Underlying RisksA recent JPMorgan research report pointed out that the U.S. stablecoin market may be entering a “zero-sum game,” where new issuance merely redistributes market share rather than expanding the total market. According to the report, the stablecoin sector’s overall market capitalization stands at around $278 billion, with its share of the broader crypto market remaining below 8% since 2020.Despite this limited growth, new competitors continue to emerge. In addition to Circle, firms such as PayPal, Robinhood, and Hyperliquid are actively deploying diversified strategies to capture market share and challenge Tether’s dominance.Circle: Building an Ecosystem and Strengthening ComplianceFollowing the passage of the GENIUS Act, Circle has enhanced transparency and compliance measures to attract institutional clients. It is also developing the Arc blockchain to improve USDC’s liquidity and scalability, further bolstering its competitive edge in the stablecoin sector.PayPal: Leveraging Traditional Finance to Drive Stablecoin AdoptionIn 2023, PayPal launched its stablecoin PayPal USD (PYUSD) in partnership with Paxos Trust Company, ensuring transparent 1:1 dollar reserves. PYUSD is already available on Ethereum and Solana, with plans to expand to TRON, Avalanche, and Sei, enhancing its utility in global payments. PayPal also incentivizes adoption through reward programs, further growing its market share.Hyperliquid: Introducing USDH to Challenge Market LeadersIn September, Hyperliquid launched the USDH stablecoin, achieving over $2.2 million in early trading volume. Positioned within DeFi, USDH is designed to integrate with Hyperliquid’s native token economy to enhance liquidity and influence. Strategic partnerships with decentralized exchanges are expanding its use cases.Robinhood: Integrating Stablecoins to Boost Transaction EfficiencyRobinhood is exploring the launch of its own stablecoin to improve trading efficiency and user experience. Stablecoin integration would enable 24/7 settlement, enhance capital utilization, and lower transaction costs. Robinhood’s acquisition of Bitstamp also extends its footprint in crypto markets, laying the groundwork for a potential stablecoin rollout.Tether’s Internal ChallengesBeyond external competition, Tether faces significant internal challenges:1. Reserve Transparency Tether has long been criticized for insufficient transparency. While the company claims USDT is fully backed by reserves, it only publishes quarterly attestations rather than continuous third-party audits. Market doubts remain about the composition and liquidity of its reserves.2. Complex and Risky Asset Structure Tether’s reserves include not only U.S. dollars and Treasuries but also Bitcoin, gold, and other volatile assets. Although diversification may enhance returns, it also exposes the company to valuation risks and liquidity stress during market downturns.3. Governance and Compliance Gaps To meet regulatory demands under frameworks such as the GENIUS Act, Tether needs stricter financial management, auditing, and risk control. Its current governance structures and processes lack full transparency and standardization, which could expose vulnerabilities during compliance reviews or crises.4. Operational Complexity from Diversification Tether’s recent forays into AI, energy, and commodities may support long-term strategy but risk diluting management focus. This could place additional strain on its core stablecoin operations and risk management capabilities.ConclusionTether’s planned private placement could push its valuation toward $500 billion, marking a historic milestone in the crypto industry. However, its dominance is not without risk. The company still faces challenges related to reserve transparency, complex asset allocation, governance and compliance weaknesses, and operational pressure from diversification.Meanwhile, competitors including Circle, PayPal, Hyperliquid, and Robinhood are leveraging compliance, innovation, and strategic expansion to capture market share.Whether Tether can retain its crown will ultimately depend on its ability to strengthen governance and adapt to tightening regulatory landscapes.