12 hours 30 minutes ▪ 3 minutes to read ▪ Written by Michael A.
If there’s one successful startup in the cryptocurrency business, it’s Tether. Despite ongoing research, USDT issuers continue to have strong scores in terms of asset reserves. At the third annual Plan₿ Forum held in Lugano, the company’s CEO Paolo Ardoino revealed details of its reserves and unveiled its diversification strategy to ensure financial stability. However, these announcements are not enough to allay concerns about the company’s transparency practices.
Tether: a diversified but controversial reserve fund
Latest USDT News: Tether’s reserves include 82,454 Bitcoins worth $5.58 billion and 48.3 tons of gold worth approximately $3.87 billion. Additionally, there is $100 billion in U.S. debt.
At Tether, we regularly work directly with law enforcement authorities to prevent the misuse of USDt by rogue states, terrorists, and criminals. We can tell if we are being investigated, as the article falsely claims. Based on that, we can confirm the following claims…
— Paolo Ardoino 🤖🍐 (@paoloardoino) October 25, 2024
According to Paolo Ardoino, it is a multi-pronged strategy that will allow Tether to maintain stability in the face of market fluctuations.
82,454 BTC: Approximately $5.58 billion. 48.3 tons of gold: $3.87 billion. US debt: $100 billion.
However, some question whether this amount is enough to guarantee stability for USDT, which has a market capitalization of more than $120 billion. To be clear, Ardoino argued that U.S. Treasuries are important to maintain liquidity. As he himself says:
“We regularly work with law enforcement to prevent abuse and will let you know if we are under investigation.”
Cryptocurrency regulation challenges
Despite reassuring statements from Tether, criticism abounds. The company has been in the spotlight, especially following a Wall Street Journal article claiming that the Southern District of New York’s Office is investigating possible illegal activity involving USDT.
The accusations suggest the stablecoin may have been used for money laundering or funding sanctioned groups.
Nevertheless, Tether rejects these accusations as “irresponsible reporting.” The company claims that since its founding in 2014, it has always worked with regulators to ensure the compliance of its operations. Data shows that the company collaborated with 145 security agencies and helped recover more than $108.8 million in USDT related to illegal activities.
Finally, not everything is rosy for Tether. Lower U.S. Treasury yields due to changes in Federal Reserve policy could result in a loss of $625 million.
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Micaiah A.
Blockchain and virtual currency revolution! Affect the fragile social situation, have a serious impact on the economic society, and solve the problems of your choice.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
