March 15, 2019 8:00 AM Subscribe
When cryptocurrency prices are quoted, the prices are mostly based on trading in USDT. Not USD - the US dollar - but the cryptocurrency Tether, which claimed in the past to be backed 1:1 by U.S. dollars. Its importance in cryptocurrency trading has made it a systemic risk in that space. Tether is no longer making the claim that they have one dollar in the bank for ever USDT in circulation; now, they admit, some of their reserves consist of loans to affiliated parties.