Tether’s offshore Deltec bank disclosed huge reserves in BTC for the stablecoin issuer as the bank revealed but it is unclear which clients it holds BTC for so let’s find out more in today’s Tether news.
Tether’s offshore Deltec bank holds huge reserves for the stablecoin issuer and made the announcement today as Chief Investment Officer Hugo Rogers said:
“It also includes a large position in bitcoin, which has received a lot of attention recently. We bought bitcoin for our clients at about $9,300, so that worked very well through 2020. And we expect it to work well in 2021 as the liquidity crisis continues to run hot.”
Tether is maybe Deltec’s most famous client and according to the market data provider CoinMarketCap, Tether now has a circulating supply of 24.3 billion USDT. Now, since the stablecoin issuer claims that each coin is “fully backed by our reserves” and each USDT is pegged to the dollar it means that it will have about $24.3 billion of assets in the bank. According to Tether’s website the reserves “include traditional currency and cash equivalents and from time to time could include other assets and receivables from loans that are made by Tether to third parties.”
— Cas “The Wolf of No Street” Piancey (@CasPiancey) January 14, 2021
Tether’s last published update from June 1, 2018, it claims that a total of $2.54 billion in USD distributed in two bank accounts. The amount was more than it reported the market cap at the time. a letter that was produced by Tether from Deltec confirmed that Tether was a client despite using other words to discuss how much money went into the account:
“We hereby confirm that, at the close of business on October 31, 2018, the portfolio cash value of your account with our bank was US$1,831,322,828.”
Tether says weekend wires are not an issue bc their biggest customers use the same bank as they do. I guess you don't use the same bank?
— Santiago Capital (@SantiagoAuFund) January 13, 2021
Deltec hasn’t divulged which of the clients it is holding BTC for as Tether is not the only customer of Deltec. In fact, one more company is using it as well which is the crypto derivatives exchange FTX. Others find it curious especially now since Bitfinex shares a leadership team with Tether owns a huge stake at the bank. Tether is not the subject of rumors alone but it is also the subject of the New York Attorney General’s Office Investigation as the NYAG was looking into Bitfinex after it gave Tether loans to hide the losses worth $1 billion.
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