Seriously scammy crypto "stablecoin", reminds me a lot of SBF's scam. Run by an Italian out of El Salvador, but somehow has higher transaction dollar volume than Bitcoin and is among the world’s biggest buyers of US Treasuries.
Tether’s ability to maintain its peg to the US dollar has been called into question by S&P Global Ratings, which downgraded the stablecoin operator’s reserves to its lowest measure due to rising exposure to high-risk assets. In a note on Wednesday, the rating agency downgraded its assessment of Tether’s assets to “weak” from “constrained”. It also flagged “an increase in high-risk assets” backing the stablecoin, with corporate bonds, precious metals, bitcoin and secured loans accounting for 24 per cent of total reserves at the end of September, up from 17 per cent a year ago…
Tether is one of the world’s biggest buyers of US Treasuries, which comprise 75 per cent of its collateral, a decrease from 81 per cent, according to the rating agency’s last review. It made $10.1bn in net profits this year to September. The company largely makes money by pocketing the interest that it earns from holding Treasuries.
Since being founded 11 years ago, Tether has been dogged by concerns over its poor disclosures and a lack of transparency. Ardoino has previously said that hiring an auditor was a top priority, but the company still puts out attestations — reviewed by BDO Italia — instead of full audits of the reserves backing its stablecoin.
Oh, the Italian guy got an Italian accounting firm to say it's all OK.
https://rudy.substack.com/p/the-increasing-economic-fragility
Oh, the Italian guy got an Italian accounting firm to say it's all OK.
Never mind, must be legit then.