- Tether to issue two new stablecoins
- Stablecoins would be backed by a basket of commodities and Chinese renminbi
- Tether’s parent firm – iFinex – is still under investigation
Tether News Today – Tether (USDT) is the most popular and largest stable coin by market cap. Digital asset investors run to the stable coin as a safe haven when other cryptocurrencies start trading sideways. The firm behind the stable coin – Tether – is planning to issue two new stablecoins. According to an over-the-counter (OTC) trader in China– Zhao Dong – Tether Ltd. Wants to release two commodity-pegged stablecoins. One of the coins will be pegged to a series of commodities. Whereas, the other will be pegged to the Chinese renminbi. Zhao Dong is also a shareholder of Bitfinex.
Tether (USDT) Price Today – USDT / USD
Tether to Issue Two New Stablecoins into the Cryptocurrency Market
Last year, iFinex gave Crypto Capital Corporation – a Panamanian payment processor – $850 million. iFinex is a privately held British Virgin Islands-based fintech firm that owns Tether Ltd and operates Bitfinex. iFinex gave Crypto Capital Corp. the money to handle the customers-fiat-withdrawals requests of Bitfinex. After they made the agreement, the Portuguese, Polish, and American authorities seized the fund. Keeping huge sums of money on a single entity is highly risky. As a result of this, Tether wants to issue a stablecoin that is backed by several commodities such as crude oil, gold, and rubber. Dong disclosed all of these during an interview with Cointelegraph.
The second stablecoin the firm wants to issue will be backed by the Chinese renminbi. The ticker for the new stablecoin is CNHT. The reserve of the new stablecoin will be held in a bank in Belgium. According to the report, the new stablecoin will be entering the market soon, possibly in the next couple of weeks. In a statement, Dong said:
“CNHT will not interfere with the People’s Bank of China (PBOC) capital control policy because CNH is different than CNY, and it is already an offshore product. On the contrary, CNHT will help China to expand the adoption of CNH for international settlements.”
Tether Decided to Issue Two New Stablecoins as iFinex Is Still Under Investigation
Bitfinex has been able to raise $1 billion in USDT in May via the sales of its LEO tokens. As such, the company started paying the loan it collected from Tether. Nevertheless, the firm plans to recover the frozen funds at Crypto Capital Corporation before they issue full payments. The intention of Tether to release two new stablecoins came as a result of iFinex Inc. – Tether’s parent firm – is still under investigation by the New York Attorney General. The parent firm of Tether is still under investigation for fraudulently covering up an $850 million loss of co-mingled client and cooperation funds.