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Tether's balance sheet: https://wallet.tether.to/transparency https://wallet.tether.to/transparency Balance breakdown: https://tether.to/tether-releases-breakd
by chrisco255 6y ago
Tether's balance sheet: https://wallet.tether.to/transparency https://wallet.tether.to/transparency
Balance breakdown: https://tether.to/tether-releases-breakdown-of-its-reserves/ https://tether.to/tether-releases-breakdown-of-its-reserves/
- chrisco255 6y agoAlso I didn't know what commercial paper is but it is apparently a very short term loan up to 270 days: https://corporatefinanceinstitute.com/resources/knowledge/credit/commercial-paper/ https://corporatefinanceinstitute.com/resources/knowledge/cr...
- Havoc 6y agoIt’s basically helping corporate entities with Cashflow. Tends to just be rolled forward so despite short term it is effectively part of their permanent funding structure
- tarsinge 6y agoI think it's the money exchanges like Binance "owe" them for the free Tether they receive. This is accounting shenanigans because the money is nowhere (i.e. when they mint Tether and send them to an exchange the commercial paper account gets credited mechanically). It's not physical reserves, but reserves in the accounting sense.
- lamontcg 6y agoAnd the collateral is probably bitcoin in Binance's cold wallets. So ultimately it is backed by crypto. Which also gives the answer to how it is kept stable (at least in the short term) because the paper is denominated in dollars and they'd have to pay back real cash if the value of the Tether slid.