Tether: A Private Bank Mirroring Central Banking in the Crypto World

The cryptocurrency market continues to evolve, and stablecoins like Tether are playing an increasingly significant role. Recent disclosures suggest that Tether operates more like a private central bank than a traditional stablecoin issuer. This is due to its complex balance sheet, significant profits generated, and use of policy-like tools in navigating market and regulatory landscapes. 181.2 billion USD in reserves against liabilities of $174.5 billion result in an excess of $6.8 billion, heavily invested in US Treasurys, gold, Bitcoin, and reverse repos.