Tether, Criticized For Its Lack Of Transparency In Issuing The Most Traded Asset In The Cryptocurrency Market, Has Raised New Questions After It Tried To Introduce Transparency. Tether Is Set To Be One Of The World’s Largest Investors In The American Commercial Paper Market, On Par With Stock Managers Vanguard And Blackrock, And More Than Google And Apple, According To Reports Released Last Month , The Financial Times Writes, Citing Jpmorgan Estimates. Commercial Paper Is Understood As Short-term Debt Issued By Corporate Entities And Not Secured.
Tether’s Report Suggests That It Has Accumulated Nearly $ 30 Billion In Such Commercial Paper – The Seventh Largest In The World. Wall Street Members, However, Say Tether’s Investment Has Passed Them By. The Publication Surveyed The Largest Players In The Financial Market, Including Bank Traders, Analysts And Money Market Funds.
we Received A Lot Of Inquiries And Heard A Lot Of Conversations, But We Didn’t See Any Active Participation,” Said Deborah Cunningham Of Federated Hermes.
“until Last Week, We Actually Didn’t Know About Them,” Said A Trader From A Large Bank. “It Was News To Us.”
Jpmorgan Analysts Write That Tether’s Interest In Commercial Paper May Be Explained By The Company’s Inability To Find A Banking Partner With Whom It Could Place Its Reserves. According To The Guidance Of The Office Of The Comptroller Of The United States Of America, Banks Can Only Accept Deposits From Stablecoin Issuers If Their Tokens Are Fully Backed By Reserves.
Collaborating With Tether “Would Probably Increase Their Reputational Risks,” Added Jpmorgan.
Stuart Hegner, Chief Attorney For Tether, Said: “when It Comes To Reputation, We See The Opposite, With More And More Counterparties Agreeing To Do Business With Tether, Satisfied With Our Commitment To Transparency. Tether Has Fully Demonstrated That All Of Our Tokens Are Indeed Fully Secured. The Last Such Confirmation Came In The Form Of A Guaranteed Opinion Of The Auditor Moore Cayman. “
Soon After The Publication Of The Above-mentioned Reserve Report, Hegner Announced That They Were Buying Commercial Paper Through “Recognized Issuance Programs” And That Their “Vast Majority” Had High Ratings. The Company Does Not Invest In Securities Issued By Cryptocurrency Exchanges Or Affiliates, He Added. He Also Noted That Tether Holds Its Commercial Paper “Internationally With Further Sub-storage In Large Global Institutions.”
Steven Diehl, A Developer And Critic Of The Crypto Space, Finds A Parallel With The Securities Of Bernard Madoff, Who Orchestrated The Largest Financial Scam In History.
“quite A Number Of Banks Deliberately Turned A Blind Eye, Even Though They All Knew That None Of Them Was A Counterparty For Madoff's Positions,” He Writes
As One Of The Possible Explanations, The Crypto Fund Cms Holdings Names Investing Through An Agent Or Broker, The Name Of Which Appears In The Reporting Instead Of Tether.
