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> Yes, it is, which in practical terms means that the company behind Tether should own real-world assets that cover all the outstanding USDT. Asset. Not assets
by Bubble_Pop_22 4y ago
> Yes, it is, which in practical terms means that the company behind Tether should own real-world assets that cover all the outstanding USDT.
Asset. Not assets.
There is only one asset that an operation so big and trusted by so many should hold and that is U.S. Treasuries.
If you feel frisky you could do G-8 govt. bonds but that's about it really. And you are taking a chance on the forex exchange.
FTX just imploded because they didn't realize this simple fact. If you are a custodian and you are not advertising yourself as an active asset manager you should stick to US Treasuries and even that could be considered a breach because you should keep USD in a bank.
Keep USD in a bank and you have nothing to fear.
- AccountAccount1 4y ago> FTX just imploded because they didn't realize this simple fact. They fully knew this. There is no business in keeping USD in USD (or US bonds for that matter.)
- Bubble_Pop_22 4y agoTrading fees when your volume is billions? Nothing? Also what about IPO so that you can exit and enjoy 500M-1B of real net worth? 1 real billion > 20 make believe
- pjc50 4y agoYou can't really keep $69,613,437,845.79 (at time of writing) in a bank. At that point, you are the bank. In the case of Tether, Deltec in the Bahamas. https://www.deltecbank.com/about-us/?locale=en https://www.deltecbank.com/about-us/?locale=en Tether themselves seem to be based in Taiwan: https://assets.ctfassets.net/vyse88cgwfbl/RPHIloRD3eE4J5QYNRnYX/bed2f368b73776c14e067088028f8a5c/Tether-Letter.pdf https://assets.ctfassets.net/vyse88cgwfbl/RPHIloRD3eE4J5QYNR... Taiwan's extradition situation is .. informal. Because Taiwan does not officially exist. But there have been extraditions from Taiwan to the US.