Stablecoin Tether gets majorly unstable
Tether, which once accounted for 95% of the stablecoin market, fell below $.90 USD this week, breaking its peg to the USD and causing widespread doubt on the coin’s future viability. Specifically, investors are worried if Tether’s failure to produce a fully independent audit confirming their USD reserves indicates the insolvency of Tether and Bitfinex, which are reported to share a number of owners and managers. These doubts are compounded by earlier news that Puerto Rico’s Noble Bank, which was reportedly Tether’s primary reserve bank, will be sold for pennies on the dollar. More recently, Bitfinex has bought $630 million USD worth of Tether with the intent of taking it out of circulation, leading some commentators to speculate Tether will be exiting the stablecoin business.
Fidelity Investments announced it will formally enter the cryptocurrency market via the creation of Fidelity Digital Asset Services (FDAS), which will provide digital-asset related tools, including custody services. Headed by Tom Jessop, a 17-year Goldman Sachs vet and the former president of the blockchain infrastructure company Chain. FDAS will also introduce a trade execution platform to clients and only grant access to exchanges complying with the “Fidelity Standard” (details still to come).