![]() ![]() It’s also been found that Tether failed to disclose its name, or its banks. Its management has been criticized for not disclosing its assets. The Commodity Futures Trading Commission has urged the company to conduct a full audit. However, critics of Tether want to know who they are loaning the money to.ĭespite the risks, Tether has begun to become more transparent. The USDC report claims that Tether holds almost 50% of its reserves in commercial paper, which is an unsecured short-term debt issued by corporations. The currency-backed token must have a 1:1 backing in cash, gold, or other commodities. While USDC claims its backing is stable, Tether says it isn’t. ![]() Many of these addresses were exchanges or custodial services. During that time, CoinMetrics identified 147 Ethereum wallet addresses that increased or decreased their USDC and USDT balances by more than $1 million. The USDC report is based on data from blockchains since May 9, when the UST lost its peg to the U.S. If this happens, it would be difficult for Tether to continue operating. This means that, should a sudden mass redemption of tether tokens take place, it could destabilize short-term credit markets. Commercial paper is an unsecured, short-term debt that is a higher risk than government bonds. In May 2021, it reported that only 2.9% of the Tether reserves were cash and the rest were commercial paper. The USDC has been conducting monthly audits of the backing of tether. A New Wrinkle in the Stability Oversight Council (USDC) USDC report on tether’s backing If you want to know about sources stability oversight council tether just read the whole article. These are just some of the recent developments and are not intended to be an exhaustive review of the issue. You may have heard of the USDC report on tether’s backing or the UST fine. If you are a cryptocurrency investor, you’ve probably noticed the recent calls for regulation of stablecoins, which are backed by fiat currency. ![]()
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