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Anyone Seen Tether’s Billions?
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Anyone Seen Tether’s Billions?

A wild search for the U.S. dollars supposedly backing the stablecoin at the center of the global cryptocurrency trade – and in the crosshairs of U.S. regulators and prosecutors.

Zeke Faux
Bloomberg Businessweek , 2021
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Editorial Rating

9

Qualities

  • Eye Opening
  • Overview
  • Hot Topic

Recommendation

In the speculative and volatile universe of cryptocurrencies, stablecoins appear to offer an attractive proposition: Their value pegs to an underlying asset, such as the US dollar or a basket of securities. Tether is the most recognized stablecoin, with one Tether purportedly backed by one US dollar. But detractors are not convinced. In this intriguing narrative, journalist Zeke Faux investigates Tether and its somewhat shady valuation dynamics. Investors, regulators and cryptocurrency holders might find some valuable clues here to the mystery of Tether.

Take-Aways

  • In October 2021, investors held $69 billion of Tether tokens, with the belief that the stablecoin is fully backed by cash assets.
  • Uncertainty clouds Tether’s one-to-one commitment.
  • Tether’s opacity and questionable business practices are drawing the attention of regulators.

About the Author

Zeke Faux is an investigative reporter for Bloomberg News and Businessweek.

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