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sorry, typo - $200 mm!
https://tether.to/en/transparency/The ability to service withdrawals tells you about liquidity not solvency. They are deeply undercapitalised versus a traditional bank.
NickCJ-
The ability to service withdrawals tells you about liquidity not solvency. They are deeply undercapitalised versus a traditional bank.
What are the rules for UK banks?
This graphic is a year old so might not be fully accurate anymore but its from a FT investigative piece so at least it is referenced but by my maths their cash reservers were in the area of 2bn rather than 200m (3.87% of $67bn) and thats not including treasury bonds and other deposits. Not to mention the corporate bonds etc.
Its worth also noting that Tether's lending portfolio brings huge cash returns which are used to provide more lending in the first instance, but for capital if needed.
Stonehedge
Any chance you could link me to where you get that $200k figure from?
They've services over $10bn of withdrawals in the last two weeks alone.