Recommendations for Stabilization
- Full “Americanization” of Tether: Calacanis urges Tether to hold 100% U.S. Treasuries instead of Bitcoin or other volatile assets.
- Sell Bitcoin Reserves: Currently, Tether’s Bitcoin holdings total roughly 87,296 BTC (~$9 billion). Calacanis views this as a systemic risk to the stablecoin.
- Independent Audits: He suggests two audits by reputable American firms to demonstrate transparency.
Reasoning Behind the Call
- Tether’s dollar-peg stability was recently downgraded to “weak” by S&P Global, citing:
- Bitcoin holdings exceeding safety buffers
- Lack of comprehensive audits
- Non-transparent custodians and counterparties
Background on Calacanis’ Concerns
- In 2021, he labeled Tether as a potential “crypto black swan” due to its opacity and lack of full audits.
- He previously warned about systemic risks posed by Tether and MicroStrategy, given their outsized crypto exposure.
Tether Today
- USDT Market Cap: ~$185 billion
- Reserve Mix: Includes Bitcoin, U.S. Treasuries, cash, and other investments.
Implications
If Tether were to follow Calacanis’ recommendations, it could:
- Reduce systemic risk in crypto markets.
- Improve investor confidence in the stability of USDT.
- Increase transparency through independent audits and full U.S. Treasury backing.