Tether: $7 billion leaks from USDT, the company reaffirms the strength of its reserves


© Jakub Porzycki via Reuters Connect

Investing.com – The , the largest stablecoin in the world and 3rd largest crypto by capitalization, saw no less than 7 billion dollars in market capitalization fly away in 48 hours, said Paolo Ardoino, the company’s chief technology officer in response to a Twitter user (NYSE:) who urged Tether to post a full audit.

“We bought back 7 billion in 48 hours, without blinking an eye. How many institutions can do the same? We can continue if the market wants, we have all the liquidity to handle big redemptions and pay everything 1 to 1. Yes, Tether is fully backed,” he said:

Recall that the circulating supply of tether fell from around $83 billion a week ago to less than $76 billion on Tuesday, as investors pulled more than $7 billion out of tether since it briefly broke. dropped its peg to the dollar last week, raising new questions about the reserves that underpin the world’s largest stablecoin.

Indeed, the “stablecoin”, which is supposed to always be worth 1 dollar, saw its price drop to 95 cents last Thursday, in a context of panic caused by the.

In another tweet, Ardoino said Tether is still working on an audit. “Hopefully regulators will push more audit firms to be more crypto-friendly,” he said.

Recall that most stablecoins are backed by fiat currency reserves, the idea being that they have sufficient collateral in case users decide to withdraw their funds.

However, in the case of Tether, cash was only around $4.2 billion of its assets. The vast majority – $34.5 billion – would be made up of unidentified Treasury bills with maturities of less than three months, while $24.2 billion of his holdings would be commercial paper such as commercial paper. , a form of unsecured short-term debt issued by companies – to back its tokens.

Finally, it should be recalled that the subject of stablecoins in the current context attracts the attention of regulators more than ever. Last week, US Treasury Secretary Janet Yellen warned of the risks posed to financial stability if stablecoins are allowed to develop regulation.

For his part, the Governor of the Banque de France, François Villeroy de Galhau, said that the recent turmoil in the cryptocurrency markets should be considered as a “warning signal” for global regulators, adding that cryptocurrency -currencies could disrupt the financial system if left unregulated, especially stablecoins, which he added are “somewhat misnamed”…



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