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How about something like "You buy US treasury bonds, then give those bonds to us in exchange for xyzcoin"? Likewise redemptions always paid in treasury bonds?
by stickfigure 4y ago
How about something like "You buy US treasury bonds, then give those bonds to us in exchange for xyzcoin"? Likewise redemptions always paid in treasury bonds?
I'm not very familiar with how treasuries get bought/sold/transferred between parties. But they seem pretty cash-equivalent, Uncle Sam will sell as much as you want, and your profit margin is baked into it.
- JumpCrisscross 4y ago> Likewise redemptions always paid in treasury bonds? This is better! But a couple issues. One, this means the U.S. Treasury has an open book into your in and outflows. Not sure that's Tether's vibe. Two, you've limited yourself to people who can transfer Treasuries. Given Tether doesn't provide consumer redemption, this isn't a huge issue. But transferring Treasuries takes more financial savvy than wiring cash, and that savvy is likely to ask for their interest (as is common in collateral arrangements).