Tether’s chief technology officer said that while companies in the crypto sector are lining up to distance themselves from the troubled bank, his company is not exposed to Silvergate. silvergateis a US bank catering to the crypto industry, which has historically struggled to acquire banking but has recently been plagued by financial woes.
The San-Francisco bank announced a net loss of $1 billion last month, along with a nearly $14 billion drop in customer deposits in the last quarter of 2022.
Yesterday, it delayed its annual 10-K report to the U.S. Securities and Exchange Commission because it needed “additional time” to allow an independent accounting firm to complete certain audit procedures.
Is USDT Linked to Silvergate?
Now, stocks are plummeting and crypto companies are severing ties with the firm. America’s largest crypto exchange coinbase announced earlier today that it was suspending payments to and from the bank. In a tweet on Thursday, Tether CTO Paolo Ardoino said: “Tether has no affiliation with Silvergate.”
#Tether does not have any exposure to Silvergate.
— Paolo Ardoino 🍐 (@paoloardoino) March 2, 2023
NEWS CONTINUES BELOW
Tether, the world’s largest stablecoin and the company behind the most traded cryptocurrency, crypto- The industry is apparently doing well despite the current brutal bear market.
Last month, it reported that despite redemption of $21 billion last year, it still made $700 million in profits in Q4 2022.
Koinfinans.com As we reported, its stablecoin USDT is the third largest cryptocurrency after Bitcoin and Ethereum with a market capitalization of $71 billion.
And it changes hands more than any other digital asset. According to CoinGecko, the 24-hour trading volume is over $34 billion.
This is because USDT is pegged one-to-one with fiat currencies. This is why traders use the asset to enter and exit transactions quickly without having to deal with US dollars, Japanese yen or other fiat currencies at a traditional bank.
But Tether as a company is controversial. To date, he has refused to prove that his stablecoin is backed by the US dollar. Moreover, the asset is not independently audited.
In 2021, the company agreed to no longer do business in New York, after a two-year New York Attorney General’s investigation alleged Tether had “made false statements about its support” of its stablecoin.