WSJ: Tether would be ‘technically insolvent’ if assets fell by 0.3%

A 0.3% drop in the value of reserve assets could push the issuer of the stablecoin Tether (USDT) to ‘technical insolvency’. The Wall Street Journal.

“I don’t think we pose a systemic risk to the crypto system,”, he said.

Top management confirmed plans to increase the frequency of audit conclusions — now they will be published monthly, and not quarterly.

As reported, on 19 August the fifth-largest auditor in the world, BDO Italia подтвердил обеспечение Tether.

The issuer of USDT confirmed plans to reduce the amount of commercial paper to $200 million by the end of August, with full elimination of these assets by the end of the year. In the second quarter, the position fell 58%, to $8.5 billion.

Earlier, Tether described the idea of hedge funds shorting USDT as ‘categorically erroneous’.

Before that, in mid-May, the stablecoin deviated from its peg to the US dollar, testing the $0.94 level. Subsequently, its price returned to parity.

Follow ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.