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Tether, the popular crypto-fiat hybrid stablecoin firm, is planning to come in the limelight of the financial sphere, with the launch of two new crypto assets.
According to the news, one coin of the controversial crypto firm will be secured with precious and lucrative commodities like gold and crude oil, while the other asset will be pegged to Renminbi, the official currency of the People’s Republic of China.
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Zhao Dong, the Bitfinex shareholder, stated in an interaction that, its sister firm, Tether, is working religiously to come up with a trading option that would reduce the risk factor involved in the creation of stablecoins, that are solely secured in the ratio of 1:1 by fiat currency in the banks.
Mr. Dong also denied the reports which claimed that USDT is not fully secured by the US Dollar. Tether, gained a lot of negative popularity from the financial enthusiasts, when the rumors concerning its currency’s reserves, flooded the block.
Dong said,
Tether is fully backed by reserves, out of 4 billion existing USDT about 3.35 billion are now in securities, and 650 million are being lent to Bitfinex. Bitfinex has been raising 1 billion with its LEO token, IEO and could easily pay back Tether any time (as a matter of fact it already paid 100 million last month) … Even if you don’t calculate this 650 million as reserves, the total amount backed by USD is 83.75% (3,350/4000) and not 72% as fake news are reporting.
Tether launching the Renminbi-secured crypto coin gained a lot of attention from the people as it came just after the decision of China launching its digital asset in the market.
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China’s cryptocurrency will be available for users and companies through a mobile wallet app. Also, it will allow the exchange of the digital coin for Chinese Yuan instantly.
