Tether to Issue Commodity Backed Stablecoin, - Dong

Zhao Dong is major investor and shareholder of the Bitfinex
03 September 2019   496

Bitfinex exchange major investor Zhao Dong told Cointelegraph that Tether plans to release a USDT stablecoin option, backed by a basket of commodities such as gold, oil and rubber.

According to an insider, the purpose of issuing such a token is to reduce the risks associated with the need to store large amounts in banks to ensure it. Dong also stressed that the flagship stablecoin USDT is not 100% secured with a fiat dollar:

Tether is fully backed by reserves, out of 4 billion existing USDT about 3.35 billion are now in securities and 650 million are being lent to Bitfinex. Bitfinex has been raising 1 billion with it's LEO token IEO and could easily pay back Tether any time (as a matter of fact it already paid 100 million last month).
 

Zhao Dong

Shareholder, Bitfinex

Dong is confident that the level of provision with USDT reserves is generally sufficient to consider this stablecoin reliable.

Even if you don't calculate this 650 million as reserves the total amount backed by USD is 83.75% (3,350/4000) and not 72% as fake news are reporting.
 

Zhao Dong

Shareholder, Bitfinex

 Zhao Dong also remembered Tether’s plans to issue CNHT stablecoin linked to the renminbi and with reserves on offshore accounts.

CNHT will not interfere with PBOC [People’s Bank of China} capital control policy because CNH is different than CNY, as it's already an offshore product. On the contrary CNHT will help China to expand the adoption of CNH for international settlements.
 

Zhao Dong

Shareholder, Bitfinex

At the end of April, the New York Attorney General's Office charged Bitfinex with the fact that, having suffered a loss of $ 850 million, it withheld this fact, partially using the funds of Tether, the stablecoin issuer affiliated with it, to cover the damage. Later it turned out that these funds were frozen in the bank accounts of the Panamanian processing service Crypto Capital.

Tether to Transfer 15M USDT to Liquid Network

It should be noted Liquid allows you to hide values ​​in the public registry using the "confidential transaction" protocol
09 January 2020   184

On January 7, Tether, the stablecoin issuer, transferred 15 million USDT from its reserves on the Ethereum blockchain to Blockstream's Liquid network, which is a federated bitcoin sidechain. The technical feasibility of such a swap was first announced in July 2019.

An important difference between Liquid and other blockchains is the support of assets that allow you to hide values ​​in the public registry using the "confidential transaction" protocol. By transferring Tether between exchange accounts through Liquid, traders will be able to avoid disclosing information about their intentions to other market participants.

Movements of tether can be tracked in general but also particularly to and from exchanges, which is valuable information. People absolutely trade based on this information. Moving from a blockchain that has transparent transactions and onto Liquid is somewhat of a no-brainer in the context of trading.

 

Grubles

Pseudonymous Blockstream community manager

 Blockstream CSO Samson Mow noted that Liquid-based Tether could be the first example of a semi-private stablecoin.

Services like Whale Alert, that track movements of assets, would not work for confidential assets in Liquid. With Confidential Transactions you can’t see the amounts being sent from one party to another. That means that USDT issued in the Liquid Network provides better privacy than USDT on other chains.

 

Samson Mow

Blockstream CSO

At the same time, the Tether emission in the Blockstream system remains public, which can help dispel skeptics' doubts.

According to Tether Technical Director Paolo Ardoino, customer interest in confidential transactions led the company to decide to transfer $ 15 million from the Ethereum network to Liquid.