If there is one start-up that is doing well in the cryptocurrency business, it is Tether. Despite ongoing investigations, the USDT issuer continues to post impressive scores in terms of asset reserves. At the third annual Plan ₿ forum in Lugano, its CEO Paolo Ardoino revealed details of its reserves, revealing a diversification strategy to ensure financial stability. But these announcements are not enough to allay concerns about the transparency of the company's practices.
Tether: A diverse but controversial reserve
Tether reserves include 82,454 bitcoinsvalued at $5.58 billion, as well as 48.3 tonnes of goldor approximately $3.87 billion. To this are added $100 billion in US Treasury bonds.
A diversified strategy which, according to Paolo Ardoinoallows 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 bonds: $100 billion.
However, some wonder if these amounts are sufficient to guarantee the stability of USDTwhose capitalization exceeds 120 billion dollars. To clarify, Ardoino emphasized the importance of US bonds in maintaining liquidity. As he himself says:
“ We regularly work with law enforcement to prevent abuse and would know if we were under investigation. »
The challenges of crypto regulation
Despite Tether's reassuring statements, there is no shortage of criticism. The company is in the spotlight, especially after an article from the Wall Street Journal stating that Southern District of New York U.S. Attorney's Office Investigating Possible Illicit Activities Involving USDT.
The accusations indicate a possible use of this stablecoin for launder money or finance sanctioned groups.
However, Tether rejects these accusations, described as an “irresponsible report”. The company claims to have always collaborated with regulators to ensure the compliance of its operations, since its creation in 2014. Data shows thathelped recover over $108.8 million in USDT associated with illicit activitiesin cooperation with 145 security agencies.
Finally, all is not rosy for Tether. The drop in Treasury bond yields, following a change in FED policy, could cost it $625 million.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
