Crypto firm Tether says it has around $1.6 billion in excess reserves to back its USDT stablecoin | Crypto Craft

  • Crypto firm Tether says it has around $1.6 billion in excess reserves to back its USDT stablecoin

    From cnbc.com

    Cryptocurrency firm Tether estimates it will make $700 million profit in the March quarter, taking its total excess reserves to over $1 billion, the company’s technology chief told CNBC, revealing the latest figures for the first time. Tether issues the USDT stablecoin, which is pegged one to one with the U.S. dollar. USDT is backed by real-world assets such as fiat currency and U.S. Treasurys so that it is always one to one redeemable with the U.S. dollar. Stablecoins are used by traders to move in and out of different cryptocurrencies without the need to convert money back into fiat currencies. Over the years, ... (full story)

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Goat
Mar 24, 2023 3:18pm
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Tether makes money from various fees, such as a $1,000 withdrawal fee (with a minimum withdrawal requirement amount of $100,000); from investments in digital tokens and precious metals; and from issuing loans to other institutions.
Uh, then how the hell do they generate $700M in three months?

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“First of all, seriously after Credit Suisse and all the others, all the banks that are failing you are looking again at Tether?” Ardoino said in reference to the instability at Credit Suisse
No real CEO would talk like this. This is a political playbook!

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“Tether is making money and banks are failing. So if you have to put money somewhere, I guess that Tether is the most safe among all the choices,” Ardoino said.
Pointing to a situation where nobody lost money, and using it to prove Tether's relative safety, is full-on financial delusional.

I'm not up on the Tether saga details, and I'm not wasting my time on it unless there's a trade to be made, but hearing from their CEO I get the feeling this company will implode with a bang.
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Goat
Mar 24, 2023 3:24pm
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https://www.hedgeweek.com/2023/01/03...against-tether

Looks like some folks are trading this. I'm not clear on the mechanics though... do you just short Tether with a broker? Is that even possible? I can't image a broker allowing you to trade a pegged instrument.
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