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.
Buying in these stablecoins may foretell where the crypto market is going.
Risks surrounding tether have been known for years, but they're commanding fresh attention as the amount outstanding swells to $25B.
Representatives say the $25B stablecoin is "regulated" but the issuer doesn't look like a financial institution bound by norms and laws.
Is the price of bitcoin and other cryptocurrencies inflated because the backing of tether may not be as strong as people think it is?
"Every tether is backed by a reserve and their reserve is more than what is in circulation," said Gregory Pepin, Deltec Bank's deputy CEO.
Tron USDT volume eclipses Ethereum for the third consecutive week.
The document production process has already stretched over a year.
The security token offering enables investors in select EU countries to share in future profits, Exordium says.
Deltec invested some clients' funds in bitcoin, but not Tether's, the bank confirms. So what exactly is backing tether?
Deltec Bank & Trust announced it had invested customer funds in bitcoin since the cryptocurrency's price was around $9,300.
The previous record of 1.5 billion USDT was set the week before last.