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USDT is backed by over $8billion in commercial paper, a lot of which seems to be in Chinese real estate companies that are very unlikely to be worth their claim
by alasdair_ 4y ago
USDT is backed by over $8billion in commercial paper, a lot of which seems to be in Chinese real estate companies that are very unlikely to be worth their claimed value.
And note that this was true in May - global markets are WAY down since then.
Moreover, it was only a spot verification - they could have moved money into treasuries for a day and then moved it back again. The auditors explicitly avoided commenting on this.
- mumbisChungo 4y agoYes, it looks like 12% of their assets are in commercial paper. I'm not claiming to be an omniscient source of truth, but USDT is supposed to be backed 1:1, is audited regularly, and has survived extreme volatility events and bank runs for the better part of a decade. Maybe it will collapse some day. I personally have more trust in USDC and Circle, so I use that if I need a stablecoin.
- belltaco 4y agoUSDT wasn't even audited once, forget about regularly. https://blockworks.co/tether-pushes-back-timeline-on-audit-report/ https://blockworks.co/tether-pushes-back-timeline-on-audit-r...
- mumbisChungo 4y agoMaybe I'm misunderstanding what this document is https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9buRWR/6fe2987698dbbf39b947af718d736ddb/Std_ISAE_3000R_Opinion_30-6-2022_RC134792022BD0303.pdf https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...
- belltaco 4y agoThat's not an audit, it's an attestation. The article says: >The company does release quarterly attestations, separate from a thorough audit, as required by a 2021 legal settlement with the New York Attorney General’s Office. Following the hiring of its new accounting firm, BDO Italia, earlier this month, Tether said it intends to release them on a monthly basis, beginning early next year.