Mystery over Tether’s Billions Deepens | Alexandria

After an only semi-related lawsuit by New York’s Attorney General, it did admit that it holds not just cash but a fair chunk of “cash equivalents” like T-Bills and “commercial paper” as well as some 25% in more risky investments like Chinese corporate debt. (Evergrande, anyone?)

Where the piece gets worrying is when it looks at that breakout — provided by an accounting firm — which included “a pie chart showing that about $30 billion of its dollar holdings are invested in commercial paper — short-term loans to corporations. That would make Tether the seventh-largest holder of such debt, right up there with Charles Schwab and Vanguard Group.”

“If Tether collapsed, well then, it’s going to gut the whole crypto ecosystem.”

coinmarketcap Mystery over Tether’s Billions Deepens | Alexandria