(I don’t have strong confidence, what follows is my impression based on what I read)
It’s my impression that a good portion of Tether’s reserves is loans to various companies in the crypto space. Those loans in turn are essentially the reason why Tether is the central stablecoin in a bunch of exchanges.
I would expect that the way Tether speculates with the reserve money is similar to how Alameda speculated with the customer funds.
(I don’t have strong confidence, what follows is my impression based on what I read)
It’s my impression that a good portion of Tether’s reserves is loans to various companies in the crypto space. Those loans in turn are essentially the reason why Tether is the central stablecoin in a bunch of exchanges.
I would expect that the way Tether speculates with the reserve money is similar to how Alameda speculated with the customer funds.