general

Where does Tether keep the funds pegging its stablecoin USDT?

Where does Tether keep the funds pegging its stablecoin USDT?

The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles

Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles

Answer Where does Tether keep the funds pegging its stablecoin USDT?

The crisis in Luna-developed stablecoin UST has made traders and investors around the world worry about the safety of their funds in stablecoins like Tether, especially after the emergence of millions of outflows.

According to the latest research, blockchain investigators have found a huge amount of real dollars that match Tether.

By analyzing the Tether stock, it is possible to determine who is behind it.

There are two major US banks that serve the digital economy and connect cryptocurrencies to the monetary world, namely:

Silvergate Bank and Signature Bank.

In the past two years, Signature Bank has seen massive fund inflows totaling $260 million in deposits in the 2020-2022 timescale.

Read:Ripple unveils new products at Swell Conference

The same applies to Silvergate, whose private documents state that it is active in the cryptocurrency space and does not have much activity in the retail sector, which means that deposits in the bank must come from only one source.

The most interesting part is the comparison between the total deposits in the bank and the history of the rise in the market value of Tether.

In the above table, it is shown that the market value of the stablecoin matches the total deposits of the two banks combined.

This link cannot be accidental given the diversity of deposits held by other banks.

The same number of deposits and the market value of Tether could have been reached in one quarter or even a year, but 10 consecutive quarters is a pattern that cannot be ignored.

Analysts note that this fact does not mean that Tether is fully reliable and safe to use, but it does clarify what the project is really about and what kind of banks are behind it.

Read:Bitcoin price hits 10-day high, Dogecoin up 10%

Read also:

Elon Musk: The worst inflation is behind us…what does this mean for the crypto market?

Metaverse real estate prices plummet and Metaverse job ads drop 81%


And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time

Previous post
Bitcoin investors follow the stock market closely to gauge the next price movement!
Next post
Elon Musk: The worst inflation is behind us…what does this mean for the crypto market?