usethebitcoin.com
Tether (USDT) seems to have the necessary dollars to back the circulating USDT coins. In a recent article released by Bloomberg, sources with knowledge on the issue provided a statement that shows that Tether’s account at Noble Bank had a similar amount of USDT that existed on January 31st, though leaves short where that status is at present day.
Tether Can Back its USDT with Real Dollars
During this year, the most important stablecoin Tether has been involved in several controversies. Different individuals and crypto enthusiasts did not believe that it could have the necessary amounts to back the USDT in circulation.
Tether is a virtual currency that is backed by real US dollars. This allows the coin to provide stability to the market. Each USDT in circulation has a US dollar behind backing it. Nevertheless, not everyone believed that Tether had the necessary amount of dollars to back all the coins in circulation.
The statement revealed by Bloomberg shows that there were $2.2 billion dollars in Tether’s bank account. Tether had an account at Noble Bank, a financial institution located in Puerto Rico. The data provided is from January 31st, 2018.
Tether has also been accused of manipulating Bitcoin (BTC) and cryptocurrency prices. In a report released by Bloomberg in June, finance professor John Griffin and co-author Amin Shams released a paper showing why Tether manipulated Bitcoin prices during bear markets.
Stuart Hoegner, the general counsel for Tether and Btifinex, informed:
“As a company that takes its legal and compliance obligations very seriously, we are not in a position to comment on the discussion we have nor to acknowledge the existence of subpoenas or similar legal requests.”
The data provided by someone with access to these records, the company’s fund match the USDT in circulation for that period.
Want To Market Your Blockchain Project? Submit A Crypto Press Release For Publication!
Tether has also unveiled a new banking partner called Deltec Bank & Trust Limited. The institution is headquartered in the Bahamas. Tether held around $1.83 billion dollars as of October 31st. CoinMarketCap also shows that this day, Tether had around 1.82 billion USDT in circulation.
Due to the uncertainty that the market had around Tether, this stablecoin lost its peg for a short period of time. Between October and November, Tether’s price fluctuated between $0.96 and $1. Now, Tether is the 6th largest virtual currency after reaching the fourth position a few days ago. It has a market capitalization of $1.88 billion.
Because of this situation around Tether, new stablecoins were released during the last months. Some of them are USD Coin (USDC), Gemini Dollar (GUSD) or Paxos Standard (PAX), among others.