It doesn’t mean it’s their primary bank if they have a bank account there.
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Nonetheless if the exchanges are using it to pool liquidity, as Larry implies, it is a single point of failure.
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I don’t know what’s going on but I don’t think they are using it to “pool liquidity”, but just for convenience when creating/redeeming tethers. It is a single point of failure for tether as that seems to be their exclusive bank.
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no.... from what Stuart Hoegner and Paolo Ardoino said this week, the exchanges use Deltec as something akin to a central bank
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Tether is effectively a liquidity pool....if exchanges and Tether all have Deltec accounts, the USD legs of exchange purchases from the Tether pool settle instantly across Deltec's books so there is no risk to Tether from timing mismatches.
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Sure tether has a lot of money there, I just don’t think other exchanges have a lot of money there
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it's still a single point of failure FOR THE EXCHANGES, because of their dependence on Tether. Can't you see that?
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No exchange depends solely on tether, they’ll be fine.
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Strongly disagree with that. Binance, Huobi and OKEx would be in a really really bad position
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What would happen? Let’s say deltec disappears and nobody can redeem. There’s a tether panic, everybody rushes to exit usdt, users left holding it suffer significant losses as the peg breaks. There’s chaos but afterwards trading continues with other stablecoin pairs.
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etherscan.io/token/0xdac17f
how would Huobi customers feel if they woke up one day and had $700m less money?
Also that's a gross underestimate; it's only counting ERC20, not TRC20, and only the largest tracked wallet.
The core movement here has parasites for sure. Saying that getting rid of them is an overall negative is incorrect IMO. This is digital infra, for 1; failure immediately communicated & resolved w/existing options. 2nd, this is a whale problem; don't GAF. 3rd, CBDCs mute all this.