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> It would be very simple for Tether to just hold $1 for each 1 Tether coin. It would not be "very simple" for them to do this. No commercial bank lets you wa
by treyd 2y ago
> It would be very simple for Tether to just hold $1 for each 1 Tether coin.
It would not be "very simple" for them to do this. No commercial bank lets you walk up to the teller with $1B and ask to deposit it, much less $93B. The financial system doesn't work that way. They have to cycle it through bonds on the repo market, which is what most huge firms do.
- a_dabbler 2y agoHSBC has had money laundering scandals with amounts in excess of 1b$
- jujube3 2y agoThis seems like annoying pedantry. Holding same-as-cash assets is not rocket science, there are plenty of professionals who could help you with that. On Vanguard you can buy things like T-bills with a few clicks. (I am not suggesting that they're using Vanguard specifically)