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The issue is figuring out which assets they have and are they the true owner. If you have assets distributed across dozens of banks and other parties who are h
by bhouston 4y ago
The issue is figuring out which assets they have and are they the true owner. If you have assets distributed across dozens of banks and other parties who are holding them for you, this becomes incredibly difficult and rife for abuse, especially when you have other non-professional/non-traditional intermediaries holding assets for you, or for whom you are exchanging favors with.
Basically compiling the list of the assets they hold and verifying it is the biggest issue here. It is definitely not at all simple -- in fact it may be deliberately obfuscated for "reasons."
- audleman 4y agoI don't understand your point. If a stablecoin issuer has trouble compiling a list of their assets that's a red flag. If a competitor comes out with simpler accounting I'll switch to them.
- bhouston 4y ago> If a stablecoin issuer has trouble compiling a list of their assets that's a red flag. I agree.
- salawat 4y ago>in fact it may be deliberately obfuscated for "reasons." In accounting/auditing, the words "it's complicated" is generally the first place you look for detailed documentation and process. If it is not there... Red flag.
- _tom_ 4y agoAssets don't have value, just because the are on the books. If the assets are bonds of questionable value, the face value of the bonds may not be meaningful.