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Correct, also USDT management does not buy long dated treasury bonds or deposit in banks that do so. That on top of their deep relationships with every major ce

Correct, also USDT management does not buy long dated treasury bonds or deposit in banks that do so. That on top of their deep relationships with every major centralized exchange means it’s very difficult to impossible for them to experience a run like USDC has.

sottol 4y ago
> Correct, also USDT management does not buy long dated treasury bonds or deposit in banks that do so. Wut? How would we know, they don't really share specifics. Last I know they have a lot of money in Chinese corporate bonds that will fare worse when growth slows a tad more but maybe that's outdated.
- rippercushions 4y ago
  In November 2022, Tether claimed that they hold US$40B in US Treasury bills "with an average maturity of less than 45 days". https://assets.ctfassets.net/vyse88cgwfbl/1Xfu4398CIoMiuKjPhvnHM/6d1608c90bb775d2d432b7b24264da28/ESO.02_Std_ISAE_3000R_Opinion_30-9-2022_RC134792022BD0548.pdf https://assets.ctfassets.net/vyse88cgwfbl/1Xfu4398CIoMiuKjPh... (Whether you should believe this claim is, of course, another story entirely.)
  - beefield 4y ago
    My understanding is that US Treasury issues a bit more than 1000 billion USD worth T-bills each month. If this is true, Tether must be one of the largest T-bill purcahser (multiple percentages of total issuance every month). Count me sceptic. Somehow I would assume this would be big news in finacial world. Edit: how do they claim bying them? I thought they had no us banking access?
- mister_tee 4y ago
  Tether claims they have completely exited their position in commercial paper and are currently over 70% in US T-Bills. https://tether.to/en/transparency/#reports https://tether.to/en/transparency/#reports Disclaimer that I'm a bit of a Tether skeptic, but if I'm wrong and they either were in, or have been able to get to, a fully-collateralized position of mostly treasuries and are earning 5% interest while paying 0% on USDT, good for them and good for regular people who won't be left holding bags. I'll always consider Tether in the context of their July 2021 CNBC interview with Deirdre Bosa. Timestamps are relative to the copy at https://www.youtube.com/watch?v=ZBEqyiO35cQ https://www.youtube.com/watch?v=ZBEqyiO35cQ I don't think they've said who the commercial paper counterparties were and claim it was an important trade secret. Traders in the US commercial paper market say they had never heard of the Tether folks which was odd given their attestations would have given them a top 10 global holding (17:20). Explanation, they use intermediaries. Will they give names or details on the intermediaries? Can't, trade secret. Did they hold Chinese commercial paper? Dodged the question twice (6:30 and re-ask 7:35). Where are the CEO and CFO of this company that holds $60B of assets? Why don't they talk to media? (24:40) But hopefully we'll get assurance regarding the reserves soon. They were excited to promise a formal audit in "months not years" during that interview (27:42)... looking forward to this spring so the audit can be released before we hit two years. (edit: trying to shorten)
  - grey-area 4y ago
    They’ve exited the position in ‘commercial paper’ that couldn’t possibly have been true? What proof verified by third parties is there that any of their assertions are true? There never has been one and there never will be. Tether are an obvious fraud run by fraudsters, caught several times committing fraud and already banned in many jurisdictions. They deserve zero trust and when this ecosystem collapses they will go to 0.
    - simple-thoughts 4y ago
      Yes USDT has management flaws but these are caused by limitations placed on their access to banking services - they have a long history of making sure they can maintain peg in spite of constant attacks from regulatory authorities, short sellers, and negative media publicity. No, I don’t recommend using USDT. But with the regulated coins being operated much more poorly than USDT, it may be the best option in certain situations.
      - grey-area 4y ago
        I would say the flaws are caused by deliberate fraud, and I don't trust their figures or those of crypto exchanges, given they have close relations with several large exchanges. https://www.wsj.com/articles/crypto-companies-behind-tether-used-falsified-documents-and-shell-companies-to-get-bank-accounts-f798b0a5 https://www.wsj.com/articles/crypto-companies-behind-tether-...
  - illiarian 4y ago
    > Tether claims Over the years Tether has claimed many things. The sum total of their claims that turned out to be true is 0.
    - brutusurp 4y ago
      Is this actually true? Tether has remained pegged at $1 USD since its inception (i.e., stable). Why all the Tether hate? Is it because a US company doesn't own it, or is there more to it?
brutusurp 4y ago
[flagged]
shapefrog 4y ago
> USDT management does not buy long dated treasury bonds or deposit in banks that do so. They don't buy long dated treasury bonds or deposit in banks because they don't have any reserves backing their "100% reserve backed" token.

sottol 4y ago

> Correct, also USDT management does not buy long dated treasury bonds or deposit in banks that do so. Wut? How would we know, they don't really share specifics. Last I know they have a lot of money in Chinese corporate bonds that will fare worse when growth slows a tad more but maybe that's outdated.

rippercushions 4y ago
In November 2022, Tether claimed that they hold US$40B in US Treasury bills "with an average maturity of less than 45 days". https://assets.ctfassets.net/vyse88cgwfbl/1Xfu4398CIoMiuKjPhvnHM/6d1608c90bb775d2d432b7b24264da28/ESO.02_Std_ISAE_3000R_Opinion_30-9-2022_RC134792022BD0548.pdf https://assets.ctfassets.net/vyse88cgwfbl/1Xfu4398CIoMiuKjPh... (Whether you should believe this claim is, of course, another story entirely.)
- beefield 4y ago
  My understanding is that US Treasury issues a bit more than 1000 billion USD worth T-bills each month. If this is true, Tether must be one of the largest T-bill purcahser (multiple percentages of total issuance every month). Count me sceptic. Somehow I would assume this would be big news in finacial world. Edit: how do they claim bying them? I thought they had no us banking access?
mister_tee 4y ago
Tether claims they have completely exited their position in commercial paper and are currently over 70% in US T-Bills. https://tether.to/en/transparency/#reports https://tether.to/en/transparency/#reports Disclaimer that I'm a bit of a Tether skeptic, but if I'm wrong and they either were in, or have been able to get to, a fully-collateralized position of mostly treasuries and are earning 5% interest while paying 0% on USDT, good for them and good for regular people who won't be left holding bags. I'll always consider Tether in the context of their July 2021 CNBC interview with Deirdre Bosa. Timestamps are relative to the copy at https://www.youtube.com/watch?v=ZBEqyiO35cQ https://www.youtube.com/watch?v=ZBEqyiO35cQ I don't think they've said who the commercial paper counterparties were and claim it was an important trade secret. Traders in the US commercial paper market say they had never heard of the Tether folks which was odd given their attestations would have given them a top 10 global holding (17:20). Explanation, they use intermediaries. Will they give names or details on the intermediaries? Can't, trade secret. Did they hold Chinese commercial paper? Dodged the question twice (6:30 and re-ask 7:35). Where are the CEO and CFO of this company that holds $60B of assets? Why don't they talk to media? (24:40) But hopefully we'll get assurance regarding the reserves soon. They were excited to promise a formal audit in "months not years" during that interview (27:42)... looking forward to this spring so the audit can be released before we hit two years. (edit: trying to shorten)
- grey-area 4y ago
  They’ve exited the position in ‘commercial paper’ that couldn’t possibly have been true? What proof verified by third parties is there that any of their assertions are true? There never has been one and there never will be. Tether are an obvious fraud run by fraudsters, caught several times committing fraud and already banned in many jurisdictions. They deserve zero trust and when this ecosystem collapses they will go to 0.
  - simple-thoughts 4y ago
    Yes USDT has management flaws but these are caused by limitations placed on their access to banking services - they have a long history of making sure they can maintain peg in spite of constant attacks from regulatory authorities, short sellers, and negative media publicity. No, I don’t recommend using USDT. But with the regulated coins being operated much more poorly than USDT, it may be the best option in certain situations.
    - grey-area 4y ago
      I would say the flaws are caused by deliberate fraud, and I don't trust their figures or those of crypto exchanges, given they have close relations with several large exchanges. https://www.wsj.com/articles/crypto-companies-behind-tether-used-falsified-documents-and-shell-companies-to-get-bank-accounts-f798b0a5 https://www.wsj.com/articles/crypto-companies-behind-tether-...
- illiarian 4y ago
  > Tether claims Over the years Tether has claimed many things. The sum total of their claims that turned out to be true is 0.
  - brutusurp 4y ago
    Is this actually true? Tether has remained pegged at $1 USD since its inception (i.e., stable). Why all the Tether hate? Is it because a US company doesn't own it, or is there more to it?

brutusurp 4y ago

[flagged]

shapefrog 4y ago

> USDT management does not buy long dated treasury bonds or deposit in banks that do so. They don't buy long dated treasury bonds or deposit in banks because they don't have any reserves backing their "100% reserve backed" token.