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It's incredible how this comment got a bunch of replies not understanding the question. Explanation: Tether is not holding a stack of paper bonds in a safe. Th

by alecco 1y ago

It's incredible how this comment got a bunch of replies not understanding the question. Explanation: Tether is not holding a stack of paper bonds in a safe. They must use some broker (or similar) to operate and hold the treasuries for them. And they are hiding how this is working. So the parent's question is who do they (Tether) hold it (treasuries) through (as in what broker/investment bank/whatever). My answer is nobody outside Tether knows. And they are one of the dodgiest companies out there. We are totally audited, bro, trust me. They could be doing leveraged investments. Or they could just be Madoff 2.0. Nobody really knows. And the US government seems to be looking the other way because they are desperate for any buyers of treasuries.

pjc50 1y ago
Exactly. I got this pointed out by one of the old school finance guys I've followed for years on Twitter/bsky; if you're a market participant of that size, other participants should expect to know who you are. If only because someone buying a billion dollars of bonds a week is useful to know if you want to unload some bonds. USDC by contrast are open in their holdings, through Blackrock. Large invisible "dark matter" financial holdings are the sort of thing that blow up badly during a financial crisis.
- evdubs 1y ago
  Tether banks with Cantor Fitzgerald. Everyone trading large amounts of US Treasury bills knows who Cantor Fitzgerald is.
evdubs 1y ago
You're not paying attention, or you are wilfully ignoring the evidence. Tether banks with Cantor Fitzgerald, a primary dealer with the Federal Reserve. From 2023: https://www.wsj.com/finance/currencies/wall-street-firm-oversees-billions-of-dollars-backing-tether-b56c68c1 https://www.wsj.com/finance/currencies/wall-street-firm-over... Every quarter, BDO confirms Tether's assets by going to Tether's banking partners directly. https://tether.to/en/transparency/?tab=reports https://tether.to/en/transparency/?tab=reports

by alecco 1y ago

pjc50 1y ago

Exactly. I got this pointed out by one of the old school finance guys I've followed for years on Twitter/bsky; if you're a market participant of that size, other participants should expect to know who you are. If only because someone buying a billion dollars of bonds a week is useful to know if you want to unload some bonds. USDC by contrast are open in their holdings, through Blackrock. Large invisible "dark matter" financial holdings are the sort of thing that blow up badly during a financial crisis.

evdubs 1y ago
Tether banks with Cantor Fitzgerald. Everyone trading large amounts of US Treasury bills knows who Cantor Fitzgerald is.

evdubs 1y ago

You're not paying attention, or you are wilfully ignoring the evidence. Tether banks with Cantor Fitzgerald, a primary dealer with the Federal Reserve. From 2023: https://www.wsj.com/finance/currencies/wall-street-firm-oversees-billions-of-dollars-backing-tether-b56c68c1 https://www.wsj.com/finance/currencies/wall-street-firm-over... Every quarter, BDO confirms Tether's assets by going to Tether's banking partners directly. https://tether.to/en/transparency/?tab=reports https://tether.to/en/transparency/?tab=reports