Altcoin News: Tether May Release Stablecoin Secured by Commodities
September 3, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
Bitfinex investor Zhao Dong claims that the sister company of the Tether exchange intends to issue a new stablecoin, which will be used to provide a basket of commodities such as gold and oil.
In a conversation with Cointelegraph, Dong said that the idea of issuing such an asset is due to the company’s desire to avoid the risks associated with storing large amounts of fiat funds in bank accounts.
“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 added, emphatically, 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”
According to him, the only reason Bitfinex still has not paid off its debt to Tether is because the exchange intends to return the funds it owned and frozen on the accounts of the payment company Crypto Capital. In addition, Bitfinex’s priorities include removing restrictions on the disposal of assets that were imposed at the request of the New York Attorney’s Office.
Dong also commented on earlier reports that Tether could issue a stablecoin CHNT, the course of which will be tied to the RMB:
“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.”
Author: Marko Vidrih
