Published
5 years ago on
August 13, 2018
"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. Investment Disclaimer