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Stephen Palley, an attorney at law firm Anderson Kill, stated on a recent Bloomberg interview that Tether, the company behind the USDT stablecoin, indeed has the financial resources underpinning its coin issuance. He dispelled rumors about the firm’s capacity to back up the $69 billion worth of digital assets in circulation.
Contrary to doubters who believe Tether’s holdings might be comprised of low-quality debt instruments, Palley assured that the company has a significant portion of liquid traditional Fiat deposits. He added that the individuals behind Tether are experienced and from Wall Street, signifying that they are under intense regulatory scrutiny.
Despite this affirmation, Palley pointed out that Tether’s opacity remains a concern, as there is still a need for more clarity regarding their reserves. He emphasized that, even though it is inevitable to have some asset risk, such risks should be disclosed explicitly to the market.
Source: CoinDesk
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