Possible criminal charges against Tether executives will put even more pressure on a product that the market is already cooling on.
The Hong Kong-based exchange said it is temporarily halting trading while investigating issues on the platform.
Bitfinex plans to enter the DeFi market via Hodl Hodl and will add fresh liquidity to the Hodl Hodl lending pool.
New research from blockchain analytics firm Elliptic asks whether zkSNACKs, the firm behind bitcoin privacy wallet Wasabi, is turning a blind eye to stolen coins.
The new composition report is part of Tether’s efforts to stay in compliance with a settlement with the New York Attorney General.
But the impact on the market may be little.
The report is similar to those produced by other stablecoin issuers like Centre or Paxos.
The integration will let investors make deposits and withdrawals more quickly, as well as mitigate counterparty risk.
The settlement appears to remove what might have been a systemic threat to cryptocurrency markets.
In a closely watched case with wide-ranging implications for the crypto market, Tether has admitted no wrongdoing and will provide reports on USDT’s reserve composition for two years.
"If any issues arise that could affect the willingness or ability of both domestic and foreign investors to use USDT, the most likely result would be a severe liquidity shock to the broader cryptocurrency market," the report says.
The NYU economist also warned bitcoin could "collapse" if Tether and Bitfinex are indicted this year.
Bitfinex says early Friday it repaid fully of the loan to Tether.
Is the price of bitcoin and other cryptocurrencies inflated because the backing of tether may not be as strong as people think it is?