Who is the CEO of Tether?

U.S. Senate Banking Committee chairman Sherrod Brown recently sent a letter to Tether Holdings Limited CEO Jean-Louis van der Velde expressing concerns about stablecoins and seeking answers by next month.

Founded in July 2014 by Brock Pierce, Craig Sellars, and Reeve Collins , Tether (USDT), originally known as “Realcoin”, is a cryptocurrency commonly known as a “stablecoin” that aims to keep a fixed 1:1 exchange ratio with the U.S. dollar.

Tether is a cryptocurrency that is pegged to a given fiat currency, for example, the USD, as well as physical assets such as gold. Tether makes money from various fees, by issuing loans to other institutions, as well as through investments .

Tethers are not backed by USD . The value of reserves like commercial papers can not be evaluated without more transparency and an audit. It is also true for banks do not back all their deposits with cash equivalents. This approach is called fractional banking.