💰The world’s largest stablecoin, Tether, has been shrouded in mystery for years. The question on everyone’s mind: where are the billions of dollars backing Tether, and are the reserves robust enough to support the world’s largest and most important stablecoin?🤔
💸Now, it has been revealed that Tether moved $37 billion of its reserves to an offshore bank called Capital Union in 2021, after settling with New York regulators over claims of falsely misrepresenting its assets.💳 The company has also enlisted Ansbacher and Cantor Fitzgerald as custodians of its reserves, but the full breakdown of Tether’s reserves and their distribution to banking partners remains unknown.
🔍The combined secrecy and enormity of Tether have earned it the reputation of “the coin that could wreck crypto”. Despite numerous investigations and calls for transparency, Tether has never produced an audit of its balance sheet or disclosed its relationships with its banking partners.
💼Paolo Ardoino, Tether’s CTO, has frequently touted Tether’s role as a “fair, transparent, and cheap way to transact among each other”. Yet, Tether’s finances have remained largely obscured, and the company has only provided snapshots of its accounts in the form of periodic “attestations”.
💸Without a long-promised audit, Tether continues to face opposition and questions about the reliability of the world’s largest stablecoin.💰