Tether and USDT have been a lightning rod for stablecoin criticism. As the longest-surviving, it’s by far the largest which also means the question of whether each coin is backed is highly important.

Given there’s no evidence that USDT are backed at anything close to a 1:1 rate (and certainly no evidence that the reserves are composed of cash in any significant way), Tether can create USDT, claim that each is worth US$1 and have almost the entire digital asset industry believe them.

Who wouldn’t like that power?

While the sheer size of the Tether and USDT scheme makes them lightning rod for stablecoin criticism, they aren’t the only stablecoin. The second biggest is USD Coin (USDC), and its $26.59 billion market cap is fast catching up to USDT’s $62.09 billion. What this should mean is that the operators of USDC should have $26.59 billion in reserve assets available to support the USDC in circulation; in theory, it’s worth US$26.59…

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