Tether Ltd.’s Bahamas-based bank, Deltec, said on Friday that the company’s stablecoin is fully backed by reserves, downplaying resurgent fears about the cryptocurrency’s integrity.
“Every tether is backed by a reserve and their reserve is more than what is in circulation,” Gregory Pepin, Deltec Bank CEO, said on the latest episode of the Unchained Podcast hosted by journalist Laura Shin. “We can see it first hand, so I can confirm that.”
Tether Ltd., the company behind the tether (USDT) stablecoin (which has a value linked to the U.S. dollar on a 1:1 basis), has been long accused of lacking of transparency about the coin’s backing. Indeed, a Tether lawyer said in 2019 each USDT was only about 74% backed by fiat equivalents.
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