Gregory Pepin, Deputy CEO of Deltec Bank in Bahamian, confirmed that Tether’s stablecoins are fully backed by US dollars.
The company is often accused of not disclosing its fiat stocks and doubts about the backing of the largest stable cryptocurrency on the market. However, as Pepin revealed in Laura Shin’s Unchained podcast, Tether’s USD holdings even exceed the volume of issued stablecoins:
“Each USDT is backed by a reserve and, in fact, there are more reserves than issued stablecoins. We see it directly, so I can confirm that there is collateral. ”
Note that over the past year, stablecoin capitalization has grown from $ 4 billion to $ 24 billion, while sometimes the weekly volume of USDT issued exceeded $ 2 billion.
Doubts about the backing of Tether’s stablecoins have been reinforced by a recent Medium article (translated into Russian), in which an anonymous author claims that the holdings of US dollars in all national Bahamian banks are insufficient to back up USDT.
Pepin said that although Deltec Bank is registered in the Bahamas, in fact, it cannot be considered a national Bahamian bank, as it does not have the appropriate license:
“We cannot serve local customers and we cannot store Bahamian dollars. Therefore the article is incorrect. In fact, the author did not dive too deep into the topic, because if he had done a more thorough research, he would have found that the capitalization of Bahamian banks exceeds $ 200 billion, and we are part of this industry. ”
The Deputy CEO of Deltec Bank also spoke about the bank’s purchases of bitcoins for its clients. According to him, the investment team of Deltec Bank is quite competent, and the bitcoins were purchased as part of training clients on portfolio investment.
As a reminder, the last time Tether’s stablecoin collateral was confirmed was in 2018. Then Deltec Bank issued an open letter in which it confirmed that $ 1.8 billion owned by Tether are stored in its accounts. Then this amount corresponded to the capitalization of the stablecoin.
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