Following the many months of intense scrutiny about its finances and whether its tokens are fully backed by USD reserves, Tether has drawn attention to itself again by discreetly altering its terms on its website.
The change now indicates that the Tether (USDT) tokens are backed not just by dollar reserves, but by other assets too:
Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”).
Before the change, the terms read:
Every tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USD₮ is always equivalent to 1 USD.
Tether has consistently defended itself by saying that its accounts fully support the Tether stablecoin, although many have been suspicious of whether this is indeed the case.
An audit released by the…