Tether Looks to Launch Commodity Backed Stablecoin

Tether is looking into launching a version of a digital currency backed by a basket of commodities which would include gold, crude oil, and rubber, according to Zhao Dong, an investor of Bitfinex.

Launched in 2014, Tether is the leading fiat-pegged digital currency in the market with a market cap of over $4 billion. However the USDT issuer has been subject to a lot of controversy related to the reserves backing the stablecoin.

Reports suggest that Tether is considering this move of a commodity digital stablecoin in order to minimize the risks associated with fiat storage at traditional banks. As revealed in a lawsuit, Bitfinex had transferred around $850 million to payment processor Crypto Capital, which had been frozen by authorities, leaving a gap in Bitfinex’s books.

The stablecoin issuer, Tether, made headlines after granting a $700 million loan to its sister company Bitfinex, which was brought to the public by the New York Attorney General’s office earlier this year. The exchange hasn’t retrieved the money yet, although its representatives are firmly optimistic. Read More at CryptoIQ...

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