Tether, the crypto stablecoin backed one to one of fiat currencies, has exceeded $ 50 billion in circulation, an amount that is more than secured deposits in all but 44 of the thousands of US banks.
This is a remarkable token cornerstone that enjoys widespread use as a payment method in the cryptosystem, even when the private company of the same name behind it has undergone regulatory control over its opacity where it holds the vast amount of reserves that support the token.
Tether will publish the first quarterly report on his reservations to the New York prosecutor this month. The disclosure is part of an agreement of a a long-running dispute with state regulators over whether it actually has reserves, but it is unclear whether investors will see it.
Not that Tether investors seem to be interested in either. The token̵
“On these offshore exchanges, Tether is the main type of collateral and margin,” said Nick Carter, co-founder of Coin Metrics. “The volume of the stock market is growing and the volume of Binance is growing. In order for traders to gain access to these cryptocurrencies, they often prefer a stable currency such as Tether. You can think of offering Tether as a transparent balance proxy for both cryptocurrencies and cryptocurrency funds. “
About 66% of bitcoins are bought using Tether, according to data tracker CryptoCompare. And the use of Tether is likely to expand as Coinbase Global Inc., the largest crypto exchange in the United States, plans to allow stable coin trading on its Coinbase Pro platform.
The quarterly report will be published in New York in May, according to Stuart Hogner, chief cryptocurrency advisor at Bitfinex and Tether. The companies, which are based mainly in the British Virgin Islands, have settled without admit itting or denying any wrongdoing.
When the agreement was announced, New York Attorney General Leticia James said that “Bitfinex and Tether are recklessly and illegally covering up huge financial losses in order to keep their scheme and protect their lowest lines. Tether’s claims that her virtual currency, fully backed by US dollars at all times, were a lie. “
The cryptosphere saw several waves after the settlement, and the amount of Tether created continues to rise after the announcement. Market participants expect a similar reaction, regardless of what this quarterly report reveals.
“The fact that Coinbase added it tells you everything you need to know,” said Kyle Samani, co-founder of Multicoin Capital.
“With the assistance of Shahien Nasirippur.”