Tether Says Its USDT Stablecoin May Not Be Backed By Fiat Alone
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 says its USDT stablecoin is "fully backed by reserves," after reporting in April its token was only 74% backed.
The dollar-pegged stablecoin tether (USDT) has become a virtual bridge between Chinese traders and global markets.
The company claims that plaintiffs cannot prove Tether transactions caused bitcoin’s surge or that damages were incurred.
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.