Odd Lots This Is What We Know About How Tether Works
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Dec 12, 2022 Bennett Tomlin, co-host of the Crypto Critics' Corner podcast and head of research at Protos Media, dives deep into the enigma that is Tether. He sheds light on its surprising stability amidst a tumultuous crypto landscape. Listen as he unpacks Tether's complex banking relationships and the skepticism surrounding its financial transparency. Tomlin also compares Tether to other stablecoins like USDC, revealing the unique challenges and implications for the crypto market. This insightful discussion provides a fascinating look at Tether's crucial role and resilience.
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Tether's Origins
- Tether, initially RealCoin, was founded in 2014 by Brock Pierce, Reeve, and others involved with Mastercoin/Omni.
- Bitfinex executives, including DeVasini and Potter, took control before Tether's launch.
Tether's Purpose
- Early cryptocurrency businesses struggled with banking relationships.
- Tether aimed to solve this by acting as an intermediary, providing dollar-backed tokens.
Early Banking Relationships
- Tether initially used Taiwanese banks relying on Wells Fargo for US correspondent services.
- They later lost access due to Wells Fargo cutting ties in 2017.