People are wiring $100mn a day into an exchange that has no known banking facilities?
OTC counter, which has been known to broker trades
How do we know this?
clearly values Tether at around $1USD
It's currently slightly above $1USD, which makes no sense for a risk-bearing asset. Tethers probably correspond best to an open-ended zero-coupon $1 bond. Why do they have negative yield? I can just about understand CHF gov bonds having negative yield but negative tether yield? Really?
If tether can be used for trading in venues where real USD can not be used, they have additional value to a certain classes of users (who will bid up the price) on top of the value as a “thing that can maybe be redeemed somehow at face value for USD”, which could support a premium price.
Comments
People are wiring $100mn a day into an exchange that has no known banking facilities?
How do we know this?
It's currently slightly above $1USD, which makes no sense for a risk-bearing asset. Tethers probably correspond best to an open-ended zero-coupon $1 bond. Why do they have negative yield? I can just about understand CHF gov bonds having negative yield but negative tether yield? Really?
If tether can be used for trading in venues where real USD can not be used, they have additional value to a certain classes of users (who will bid up the price) on top of the value as a “thing that can maybe be redeemed somehow at face value for USD”, which could support a premium price.