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Bloomberg: Tether Bank Statements Show It Has Full Fiat Reserves

Sanmi Adeagbo | Dec. 19, 2018
Bloomberg: Tether Bank Statements Show It Has Full Fiat Reserves

According to a report by Bloomberg, Tether (USDT) a cryptocurrency stablecoin, has fiat reserves that is equal to the number of tokens in circulation.

December 19, 2018 | AtoZ Markets - Lately, there has been controversies surrounding Tether. Tether is a cryptocurrency stablecoin used as an equivalent of the Dollar. Tether theoretically backs up each unit of USDT with $1. There has been series of legal battles concerning Tether and Bitfinex after it was discovered that the companies have been involving in ill-practices. The new Bloomberg publication has suggested that Tether has a combined fiat balance equal to or even higher than USDT in circulation from September 2017 to July 2018. The report also claimed that Tether made $6.6 million in interest in the first half of 2018.

Tether Price Manipulation Probe

Tether which was designed to have the same value as $1 has been fluctuating in the last few months. The company along with Bitfinex was faced with price manipulation probe last month. At this same time, Tether left it's banking partners, Noble Bank for Deltec after critics questioned about the bank's liquidity.

Bitfinex Denied Tether Partners

Meanwhile Bitfinex has publicly denied having ties with tether's banking partners. According to the reports from Bloomberg, Tether's movement of funds to Deltec corresponded to equivalent changes in its Noble bank balance.

A lot of traders use Tether to hedge their positions in this period when Cryptocurrencies have dropped massively. This has made Tether have increased popularity. Currently, there has been a minor move upside in the prices of Bitcoin and Altcoins. Most have gained between 20 and 35% from their respective fresh 2019 lows.

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