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Note there no mention of redemptions, just a reduction in the circulating supply. My guess is the USDT was borrowed and Tether is holding less commercial paper

• charcircuit 4y ago
  >Note there no mention of redemptions They have mentioned paying out billions in redemptions on twitter.
  • CTDOCodebases 4y ago
    From the horse's mouth: "Tether has over $70 billion dollars of collateral which it can redeem USD₮ against. No exchange’s order book has anything remotely resembling that amount of liquidity."[0] When you look up the attestation that they provide each quarter 24% of this collateral is commercial paper.[1] Companies could be redeeming USDT for their own commercial paper. If you trust these attestations they have a lot of treasury bills and have increased their cash holdings by a couple percent so fingers crossed for those holding USDT. [0] - https://tether.to/en/understanding-tethers-peg-and-reserves/ https://tether.to/en/understanding-tethers-peg-and-reserves/ [1] - https://tether.to/en/transparency/#reports https://tether.to/en/transparency/#reports
    • piva00 4y ago
      > If you trust these attestations they have a lot of treasury bills and have increased their cash holdings by a couple percent so fingers crossed for those holding USDT. This is the big if. They only do attestations, they don't allow proper audits and fired their auditors once when they got too nosy. It might have changed since then and they hold more cash or "cash-equivalent securities" (another iffy point), they still have never been properly audited so everything boils down to a very big "trust me"... US$80b of value is under that trust premise. I wouldn't trust these people but I'm just a lowly drone in the bigger scheme of things.