USDT Are Backed by USD, Tether Says

Chief Compliance Officer of Tether Ltd. also said the company's assets always exceeded financial liabilities
16 October 2018   1076

Chief Compliance Officer of Tether Ltd. Leonardo Real stated that all USDT tokens are secured by fiat reserves, and the company's assets always exceeded financial liabilities. It is reported by CoinDesk, citing representatives of the issuer.

Tether is the leading provider of tokenized fiat currencies and is listed on many exchanges worldwide. We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities. In June 2018, a report from Freeh Sporkin & Sullivan, LLP (FSS), based on a random date balance inspection and a full review of relevant documentation of bank accounts, confirmed that all Tethers in circulation as of that date were indeed fully backed by USD reserves.
 

Leonardo Real

Chief Compliance Officer, Tether Ltd

Reel also stressed that the report of the law firm Freeh Sporkin & Sullivan, LLP (FSS) of June said that all tokens are provided with dollars in bank accounts.

However, FSS indicated in the report that the procedures performed by it “are not intended to provide guarantees and should not be confused with an audit”, since the work was carried out “without observing auditing and accounting standards”.

On Monday, October 15, the USDT price dropped to a 18-month low at $ 0.92. At the time of writing, the price has recovered and is about $ 0.97.

Tether to Report on Integration With Aave

One of the first steps in expanding in DeFi space is cooperation with Aave, non-custodian crypto-lending platform, formerly known as ETHLend
11 March 2020   257

Tether Technical Director Paolo Ardoino spoke at the Digital Asset Summit event and revealed his company's plan to expand in the decentralized finance (DeFi) space. Ardoino said that DeFi platforms have shown significant interest in the Tether stablecoin and are ready to work with its issuer.

The first such agreement was signed with non-custodian crypto-lending platform Aave, formerly known as ETHLend. The parties to the agreement intend to “ensure wider adoption of Tether (USDT) as a financial instrument in the nascent ecosystem of decentralized finance.”

In particular, we are talking about the so-called instant loans, when the user can receive funds without collateral, but must return them in the same block with which they were provided to him. Public attention to this new type of lending was attracted after attacks on the bZx platform. Companies note that it also finds many useful areas of application, for example, in arbitration on the blockchain or when moving trading positions between DeFi platforms.

I believe that DeFi is one of the most promising markets or technologies that are rising at the moment. The entire ability of having on-chain exchanges and loan issuance is a key element of growth for the entire crypto system. [...] It’s normal for Tether to try to lead the space or be the most-used stablecoin in the space.

 

Paolo Ardoino

Tether Technical Director

The interest rate on such deposits can vary significantly over time. Shortly after adding USDT to the Aave platform, it was 12%.