The controversy surrounding the backing of Tether’s USDT tokens has resurfaced following a recent alteration to the company’s terms of service that now state the reserves backing USDT comprise “traditional currency and cash equivalents and … other assets and receivables from loans made by Tether to third parties.” Despite tether’s dominance among stablecoins by market share and capitalization, Tether is facing increasing competition from newer stablecoin projects that have been able to provide regular attestations evidencing U.S. dollar backing since launch.
Also Read: Bitcoin Cash Developers Launch Privacy-Preserving Light Client Neutrino
New Tether Terms of Service State Stablecoins are not Exclusively Backed by USD
Tether has updated its terms of service regarding the backing of its USDT token, apparently reversing previous assertions that all USDT tokens are backed one-to-one with USD reserves.
Tether’s homepage now states that “Every tether is always 100% backed by our reserves, which…