Tether: dollar reserve holdings may not be there
Tether: dollar reserve holdings may not be there

Tether: dollar reserve holdings may not be there

By Amelia Tomasicchio - 14 Mar 2019

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Much has been said about Tether and its US dollar reserve holdings and today, in a blog post, the company admits that not all the coins are backed.

Today, in fact, Tether’s website has been updated and the stablecoin’s Terms and Conditions have been “silently” changed.

While previously every USDT corresponded to one US dollar in the company’s reserve holdings, now it is stated that “every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”)”.

This means that Tether is no longer a 100% US dollar-backed stablecoin since the underlying can also include other currencies.

Amelia Tomasicchio

As expert in digital marketing, Amelia began working in the fintech sector in 2014 after writing her thesis on Bitcoin technology. Previously author for several international crypto-related magazines and CMO at Eidoo. She is now the co-founder and editor-in-chief of The Cryptonomist. She is also a marketing teacher at Digital Coach in Milan and she is writing a book about NFTs for the Italian publishing house Mondadori, while she is also helping artists and company to entering in the sector.

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