The dollar-pegged stablecoin tether (USDT) has become a virtual bridge between Chinese traders and global markets.
Tether has a real-world use case: Chinese importers of cheap goods in Russia use it to send millions home daily.
Tether's general counsel told the New York Supreme Court that it can only back about 74% of USDT in circulation as of Tuesday.
Tether has updated the terms on its website, saying that its dollar-pegged USDT stablecoin may not be backed 100 percent by fiat reserves.
Tether is gearing up to launch its controversial stablecoin as a native token on the Tron blockchain.
Tether Ltd. may have the cash reserves to back up its 1.8 billion dollar-pegged tokens, says Bloomberg.
The broader cryptocurrency market plummeted on Wednesday, but stablecoins in particular saw no shortage of buyers.
PwC's Hong Kong division is exploring best practices for issuing stablecoins with non-profit Loopring Foundation. Auditing, though, is another matter.
Last week's much-scrutinized letter, in which a Bahamas-based bank appeared to vouch for Tether's balance, has been confirmed as genuine by the bank.
The wisp of a signature on Deltec Bank's letter to Tether is the least of it. More important is the language around liability.