"Tether has also become a crypto bank for cryptocurrency businesses that have trouble maintaining real-world banking relationships, providing liquidity and a place to park assets, according to a new study from blockchain research firm Chainalysis."Not only does Tether exist as a banking option for crypto companies, it also maintains a structure that could be considered, bank-like. According to Cryptoglobe, the WSJ report states:
"In June, Tether hired law firm Freeh Sporkin & Sullivan LLP, co-founded by former Federal Bureau of Investigation Director Louis J. Freeh, which issued a report stating that it believed tether had full dollar backing."Moreover:
“Tether has become a key source of liquidity. At times this summer, tether has represented as much as 80% of bitcoin trading volume, according to research site CryptoCompare. When the year began, it accounted for about 10% of bitcoin trading volume."Of course, Tether isn’t a totally viable cryptocurrency banking solution, it does however offer some of the advantages of a central bank, in a hybrid FIAT and crypto field. I suppose we could well see this as a model for the future of Central Bank Digital Currencies, something that the likes of the Bank of England and the Reserve Bank of India have very recently been associated with.