During a recent Unchained podcast, the Deputy CEO of Deltec Bank, which servesTether said that the stablecoin is fully backed by the bank's reserves.
Grigory Pepin, deputy CEO of a Bahamian bank, said:
Yes, every USDT is backed by a reserve. And the reserve is even larger than stablecoins in circulation. The bank's management sees this with their own eyes and I can confirm this fact.
He added that new USDT are printed only when the bank receives the necessary amount to cover the issue.
According to Pepin, reserves do not always consist only of fiat currencies. Tether's reserves, which the bank manages, also consist of “other assets” and loan receivables.
We will remind that earlier the chief attorney of Tether stated,that stablecoin is only 74% supported. These statements and regulatory lawsuits against Tether or Bitfinex have led many members of the cryptocurrency community to look at the project more critically.
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