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IPFS News Link • Cyberspace and the New Economy

Crypto's Shadow Currency Surges Past Deposits of Most U.S. Banks

• by Olga Kharif

It's a remarkable milestone for a token that enjoys wide use as a method of payment in the crypto ecosystem, even as the eponymous private company behind it has endured regulatory scrutiny for its opacity on where it holds the enormous sum of reserves that back the token.

Tether is set to release the first quarterly statement on its reserves to the New York Attorney General this month. The disclosure is part of a settlement of a long-running dispute with state regulators over whether it actually has the reserves, but it is unclear whether investors will get a glimpse at it.

Not that Tether investors seem to care either way. The token's popularity has only grown amid the legal hubbub, as it became the most traded cryptocurrency in the world, exceeding even the volume of market leader Bitcoin. Traders and speculators use it as a conduit to conduct transactions on crypto-only exchanges such as Binance and to park assets to avoid the sector's extreme price volatility.