MoneyNews

Bitfinex investor: Tether will be provided with gold, oil and rubber

UNITED STATES, WASHINGTON (OBSERVATORY) — Bitfinex exchange major investor Zhao Dong told Cointelegraph that Tether plans to release a USDT stablecoin option, backed by a basket of commodities such as gold, oil and rubber.

According to an insider, the purpose of issuing such a token is to reduce the risks associated with the need to store large amounts in banks to ensure it. Dong also stressed that the flagship stablecoin USDT is not 100% secured with a fiat dollar:

“$ 4 billion of the existing USDT offer was secured by $ 3.35 billion of reserves, and $ 650 million were loaned by Bitfinex. Bitfinex raised $ 1 billion through the IEO LEO token and can easily repay its debt to Tether at any time. In fact, she already paid $ 100 million last month. ”

Thus, Dong is confident that the level of provision with USDT reserves is generally sufficient to consider this stablecoin reliable.

“Even if you do not take into account the same $ 650 million, the total amount of collateral in US dollars is 83.75% [3.35 / 4 * 100], and not 72%, as indicated in the fake news,” he added.

Zhao Dong also remembered Tether’s plans to issue CNHT stablecoin linked to the renminbi and with reserves on offshore accounts.

“CNHT will not be an obstacle to the control over capital flows by the People’s Bank of China. CNH is different from CNY because it is already an offshore product. On the contrary, CNHT will help China expand the implementation of CNH in international settlements,” added the shareholder of Bitfinex.

Recall that at the end of April, the New York Prosecutor General’s Office charged Bitfinex with the fact that, having suffered a loss of $ 850 million, it concealed this fact, partially using the funds of Tether, the stablecoin issuer affiliated with it, to cover the damage. Later it turned out that these funds were frozen in the bank accounts of the Panamanian processing service Crypto Capital.

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