Tether Gains $6.6 Million In Interest, Full Cash Reserves Still Uncertain

The controversial stablecoin Tether makes its way back into our crypto news and today we take a look at its background.

According to a report written by Bloomberg News, Tether gains huge amounts of interest on it US dollar reserves. The reserves are kept in multiple banks across Canada, Puerto Rico and the Bahamas. According to some of the bank reports, Tether earned at least $6.6 million in interest over a 7 month period.

To continue, it is still unknown whether Tether has the cash reserves as before claimed based on the bank statements but still the sources of the funds and the present location is unknown. The Commodities Futures Trading Commission has already issued a subpoena to the company because of the veracity of its cash reserves.

It still remains a mystery how the company operates daily. Tether refuses to allow the cash reserves to be audited and there is not a single statement about how much Tether has in its reserve accounts. There is only information about transferring and receiving USDT.

As far as we know, Tether could be running a fractional reserve system as many critics seem to believe. It will remain impossible to prove this theory wrong until the audited is commissioned.

The company works as a bank for some crypto exchanges that have zero fiat banking relationships which mean that there is a large piece of the market that is dependent on Tether to achieve fiat to crypto liquidity.