Will the US Default on Its Debt? Circle Ditches Treasuries and Tether Buys BTC
The Breakdown
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Tether's 2.5 Billion Plus USD Equivalent in Company-Owned Excess Reserves
Tether CTO Paulo Arduino explained more about the decision in his announcement tweet. He writes, Transparency is king, Tether today has 2.5 billion plus USD equivalent in company-owned excess reserves. These excess reserves have been accrued through interest rates on our massive UST bill portfolio and other investments like gold. While banks can do fractional reserve, we believe that's not a viable strategy for a stablecoin. So it's crucial that Tether keep an additional cushion to further protect its user base.
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