Bitfinex Shareholder Reveals Tether’s Plans About Commodity-Backed Stablecoin

A Bitfinex shareholder is in the latest cryptocurrency news for revealing Tether’s upcoming plans to release a version of the stablecoin that is backed by a basket of commodities including gold, crude oil and rubber. We are talking about Zhao Dong, who recently claimed that the idea of issuing Tether (USDT) pegged to a commodities basket was being mooted in order to mitigate the risks associated with keeping large amounts of funds deposited in banks.

As the stablecoin and altcoin news show, Dong commented on the long-standing controversy which revolves around Tether and its flagship USD stablecoin – as well as the allegations sent by many – claiming that Tether’s USDT is not backed 1:1 by the dollar.

“Tether is fully backed by reserves, out of 4 billion existing USDT about 3.35 billion are now in securities and 650 million are being lent to Bitfinex. Bitfinex has been raising 1 billion with it’s LEO token IEO and could easily pay back Tether any time (as a matter of fact it already paid 100 million last month),” he revealed.

The Bitfinex shareholder also added that “even if you don’t calculate this 650 million as reserves the total amount backed by USD is 83.75% (3,350/4000) and not 72% as fake news are reporting.”

He claimed that the only reason Bitfinex has not yet closed its loan with Tether is the fact that the company first wants to recover those of its funds that have been frozen in the controversial Panama based processor named Crypto Capital.

Dong remarked on the fresh news which was reported earlier this month – and said that Tether is planning not only a commodity-backed asset but one that would be pegged to the Chinese yuan and be held in offshore accounts and traded under the CHNT ticker.

“CNHT will not interfere with PBOC [People’s Bank of China} capital control policy because CNH is different than CNY, as it’s already an offshore product. On the contrary CNHT will help China to expand the adoption of CNH for international settlements,” he stated.

As reports shared on many best cryptocurrency news sites this week showed, Bitfinex and Tether have again responded to the NYAG’s case against them and maintained the allegations that Bitfinex lost $850 million in funds needed for user redemptions – and used capital from Tether to cover the shortfall.