Investors withdraw over $7 billion from tether, raising fresh fears about stablecoin’s backing

CNBC/Ryan Browne/5-17/2022

“Investors have withdrawn more than $7 billion from tether since it briefly dropped from its dollar peg, raising fresh questions about the reserves underpinning the world’s largest stablecoin. Tether’s circulating supply has slipped from about $83 billion a week ago to less than $76 billion on Tuesday, according to data from CoinGecko.”

USAGOLD note: It has been said that if tether goes, so will the whole of the crypto superstructure. Will the buck be broken? Judging from the withdrawals, it looks like it is going to be tested. Per this report tether tokens are backed one to one by a pool of cash ($4.2 billion), Treasuries ($12.3 billion), and commercial paper ($24.2 billion). Last July, the company told CNBC it would produce an audit in a matter of months. It has yet to do so.

line chart showing tether token in dollars


Chart courtesy of TradingEconomics.com

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