☕Tether is backed by 50% commercial paper
The company behind the largest stablecoin published its report for Q2 2021. Per the report Tether has a total backing of $62.7 billion. The documentations were signed by Moore Cayman, a Cayman Islands-based auditor, on June 30, 2021.
$30.8 billion of the total backing comes from commercial paper and certificates of deposit. Additionally, Tether holds 10% in cash and bank deposits.
The report is quite better than the previous one posted in May. That report suggests that as of March 31 2021 76% of Tether’s reserves are in cash and cash equivalent. It also showed that just 3% of all stablecoins are backed by cash.
☕Circle to become a “national digital currency bank”
The move would place the company under the regulatory attention of the Federal reserve and various financial institutions in the US.
Circle CEO Jeremy Allaire said that the shift would strengthen the stablecoin which has more than $27.5 billion in circulation.
Last month the company published a report about its reserves. According to the information USDC is backed 60% by cash. Even though the company still has some positions in commercial paper (9%).
☕Price of gold crashes 6% in just a few hours
The price dropped from $1800 to $1690 in two hours. These are the lowest levels of the precious metal since March this year. At the same time the “digital gold” - Bitcoin - increased by 5% in the past 24 hours.
According to the forex trader Peter Brandt the gold crashed because of the leverage used for trading. The high levels of leverage may cause big liquidations if the price goes against the traders.
☕MicroStrategy and Bitcoin mining stocks surge
Current price movements made Bitcoin and Ethereum to flash in green but they also took the MicroStrategy and Bitcoin mining stocks on the rally.
Michael Saylor’s software business became well known among the crypto community for its numberless Bitcoin purchases. As a result the shares become highly correlated with the price of the cryptocurrency and currently the price per share is around $700.
In addition many of the public crypto mining companies take advantage of the Bitcoin’s move. One of them is Marathon Digital Holdings.
Data from TradingView shows that after reaching a low of $20.52 on July 20, the price of MARA has rallied 83% to an intraday high of $37.77 on Aug. 6, making MARA the top-performing Bitcoin mining stock over the past two weeks.