Tether Reportedly Has No Ties to Failed Crypto Bank Silvergate
Tether CTO Paolo Ardoino says the company behind the world’s largest stablecoin by market cap has no ties to troubled bank Silvergate.
Tether has no links to Silvergate, claims Chief Technology Officer Paolo Ardoino, as companies in the crypto industry move to distance themselves from the troubled bank.
Silvergate, a US bank that caters for the crypto industry and which has sought a banking license in the past, is currently struggling financially. Last month, the San Francisco-based bank posted a financial loss of 1 billion USD and a decline in customer deposits of approximately 14 billion USD for the last quarter of 2022. In addition, it has delayed the March 1 release of its annual 10-K report to the U.S. Securities and Exchange Commission because it says it needs "additional time" to allow an independent accounting firm to complete their audit procedures.
Silvergate's stock is plummeting and many crypto companies are ending their dealings with the bank. Coinbase, the largest U.S. cryptocurrency exchange, said on Thursday (March 2) that it is stopping payments to and from the bank. On the same day, Paolo Ardoino said in a Twitter post, "Tether has no exposure to Silvergate."
Tether is the largest stablecoin and one of the most traded cryptocurrencies in the world, and despite the ongoing bear market, it is in relatively good health.
The company announced in February that it had generated a 700 million USD profit in the final quarter of 2022 despite the fact that it processed 21 billion USD in redemptions during the year. With a market capitalization of 71 billion USD, tether ($USDT) is the third largest cryptocurrency in the world after bitcoin and ethereum. According to CoinGecko, USDT ranks as the most traded digital asset. The trading volume in 24 hours is more than 34 billion USD.
The popularity of the stablecoin lies in the fact that it is pegged one-to-one to fiat currency, hence traders use $USDT to quickly enter and exit trades without having to deal in US dollars, Japanese yen or any other fiat currencies.
However, it has been controversial in some respects, as the company has so far refused to prove that $USDT is backed by US dollars, and has not been independently audited. In 2021, tether agreed to cease doing business in New York State after the New York Attorney General said that after a two-year investigation, Tether had "made false statements about the backing" of its cryptocurrency.
However, the fact remains that despite this allegation, $USDT enjoys great popularity and remains one of the largest cryptocurrencies in the world.
Source: decrypt.co
analyst opinion
Jakub Odvářka
Tether has no links to Silvergate, claims Chief Technology Officer Paolo Ardoino, as companies in the crypto industry move to distance themselves from the troubled bank.
Silvergate, a US bank that caters for the crypto industry and which has sought a banking license in the past, is currently struggling financially. Last month, the San Francisco-based bank posted a financial loss of 1 billion USD and a decline in customer deposits of approximately 14 billion USD for the last quarter of 2022. In addition, it has delayed the March 1 release of its annual 10-K report to the U.S. Securities and Exchange Commission because it says it needs "additional time" to allow an independent accounting firm to complete their audit procedures.
Silvergate's stock is plummeting and many crypto companies are ending their dealings with the bank. Coinbase, the largest U.S. cryptocurrency exchange, said on Thursday (March 2) that it is stopping payments to and from the bank. On the same day, Paolo Ardoino said in a Twitter post, "Tether has no exposure to Silvergate."
Tether is the largest stablecoin and one of the most traded cryptocurrencies in the world, and despite the ongoing bear market, it is in relatively good health.
The company announced in February that it had generated a 700 million USD profit in the final quarter of 2022 despite the fact that it processed 21 billion USD in redemptions during the year. With a market capitalization of 71 billion USD, tether ($USDT) is the third largest cryptocurrency in the world after bitcoin and ethereum. According to CoinGecko, USDT ranks as the most traded digital asset. The trading volume in 24 hours is more than 34 billion USD.
The popularity of the stablecoin lies in the fact that it is pegged one-to-one to fiat currency, hence traders use $USDT to quickly enter and exit trades without having to deal in US dollars, Japanese yen or any other fiat currencies.
However, it has been controversial in some respects, as the company has so far refused to prove that $USDT is backed by US dollars, and has not been independently audited. In 2021, tether agreed to cease doing business in New York State after the New York Attorney General said that after a two-year investigation, Tether had "made false statements about the backing" of its cryptocurrency.
However, the fact remains that despite this allegation, $USDT enjoys great popularity and remains one of the largest cryptocurrencies in the world.
Source: decrypt.co
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