Rule Change: Tether says USDT May not be Fully Backed by US Dollar Funds
[ChainDD report] March 15 (ChainDD) In its updated introduction of the US dollar-pegged stablecoin USDT, the issuer Tether said USDT’s underlying reserves may sometimes include assets beyond traditional U.S. dollar funds.
ChainDD found that Tether stated, according to its updated official website, “Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”).”
While CoinDesk note that the Internet Archive showed back to the mid-February, 2019, Tether’s website indicated that USDT is totally backed by the fiat currency US dollar. At that time, Tether said: ” Every tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USDT is always equivalent to 1 USD.” That means Tether added new interpretation of its “reserves”.