Tether

People are free to commerce with each other however they want, right? So a new version of that are stable coins where private companies issue dollar contracts that trade on blockchains, okay? So some of those were spectacular failures, obviously, Terra Luna.

I would never recommend that you like store any meaningful money in these things, but I do think we need to recognize that they've been very popular, especially Tether globally.

where it gives people a way to have access to digital dollars with no kyc that's super useful if you're in argentina or lebanon or wherever um i don't really view it i think a lot of people are like believing that it competes with bitcoin i don't really think it changes much i i mean Bitcoin was always a protest against state-created money.

It's an alternative that's unstoppable and it offers a lot more open building and development and clever, cool things you can build with it.

It's a new challenge because it kind of.

gives new life to the dollar system, right? Because it gives the dollar system a new buyer of dollar debt because all these stablecoin issuers have to buy bonds.

So like stablecoin issuers like Tether and Circle are... a top three global buyer of U.S. debt, which is pretty crazy.

Like they're up there with like China and JP Morgan.

And that sparked a lot of debate.

And then last week or a couple of weeks ago, Tether blanklisted a few of Thirteen's vaults.

And so I think the common theme that we're seeing here is this debate on whether, you know, Somebody or like a company, a project in crypto should be allowed to freeze, censor, stop addresses, funds if they're allowed to, especially in the case of a hack or a theft.

And so we have different versions of this discussion here.

Okay, awesome.

Okay, so now that we have that out of the way, we understand how 13 works.

I want to get to, before we get into kind of the specific cases that I described before, the BitGet hack, Tether, 13's own kind of main hack, all that.

I want to ask you just kind of your view on this overarching theme that I mentioned.

Shout out to the Morpho team.

And Tether leads Murals' 15 million round.

Congrats, Sinclair and the Mural team.

Also, Coinbase to power stablecoin backed cards for Marketo customers.

That's how I bought my first jar of Microdays microdosing solution.

Make sure you use code Bitcoin and at Microdays.cc. UTXO opens UTXO Mint early access for USDT on Bitcoin ahead of November 28 launch.

That is in two days.

This is out of Bitcoin Magazine.

Professional operators can now test USDT on Bitcoin and get their integrations ready for November's public launch.

UTXO, which is spelled U-T-E-X-O, has opened UTXO Mint, its dedicated platform for professional operators preparing to support and offer USDT on Bitcoin.

The public launch is scheduled November 28th.

The return of USDT creates an opportunity to bring dollar liquidity into the Bitcoin ecosystem, opening new markets for trading and BTC-backed lending.

But the interest on said treasuries is not transferable.

And so you look at a company like Tether, and I will tell you right off the bat, I believe that the 81 plus billion in gold that has been delivered to COMEX this year, the almost 18 billion in silver that has been delivered to COMEX this year by the commercial banks, if you told me that the Exchange Stabilization Fund, Secretary Besant, who runs it, who has the authority through the Exchange Stabilization Fund, if for national security, to bypass congressional approval, to leave it on the balance sheets of the banks, because the pushback is, well, it doesn't leave.

It doesn't leave.

A lot of it stays there.

And if you're the government, do you care if they sit on COMEX? No, you don't.

You note, and it keeps them at arm's length.

Now, if we look at Tether, how all of this would be revalued, synthetically yet organically.

Before I talk about that, let me just mention a couple things.

they had the clarity act in their their lap in january of this year january and and you know couldn't figure out in nine ten months you know couldn't figure out what to do with it now i think look i think the ceo of coinbase you know kind of really messed up on this one as well but you know but that's a but that's another that's a kind of another story so but anyway so but the point is that yeah the a lot there's the the kind of the log jam on a lot of this stuff has been kind of pushed through at least temporarily we'll see what that brings uh but michael saylor is betting on that you know bitcoin's gonna come back over a hundred thousand over the next year uh which may well happen and like i said i do think he has a good point i mean look i think he's looking at it probably similar to the way that i'm looking at it and that is that if it takes years and good things happen in the next few years people are basically building wealth with it it's not hurting anybody that yeah then you know every then basically no no politician's going to take that away and i don't i don't disagree with that so but but we'll see we'll see how over the next year or two how that all plays out so anyway all right on to some other stuff so He crafted a crypto law for Trump as his company got millions from a crypto giant.

Money from Tether flowed to Nexum, spelled N-X-U-M, Nexum, while Bo Hines worked in the White House on landmark stablecoin legislation once the law passed.

Tether hired him as its U.S. chief.

I mean, this just does this just looks really bad.

And if Bo Hines really did that, you know, he might he might get away with this.

The president's 29-year-old crypto advisor rose from the front row to applause.

what most people in the room didn't know while heinz was leading the white house's push to pass the genius act heather the company with the most at stake in the legislation was steering millions of dollars to a business he co-owned according to messages internal documents and payment records reviewed by the Wall Street Journal.

Hines exchanged signal messages showing that while he was in the White House, he took part in a group chat with his company partners where he discussed legislative developments and relayed Genius Act talking points as his partners were communicating with Tether's chief executive.

Final story of the day.

Tether's facing fresh scrutiny in Washington.

Senator Richard Blumenthal says he wants answers after reports that the stablecoin giant paid millions of dollars to a consulting firm started by former White House crypto advisor Bo Hines and his father, all while stablecoin legislation was being negotiated into law.

The Connecticut Democrat says that relationship raises legal and ethical questions, and he's asked Tether to hand over records of its dealings with the firm called Nexum, as well as with Heinz directly.

Tether has not been accused of wrongdoing.

And that is it for the block briefing this afternoon or this morning, depending on where you're joining us.

We're going to be moving swiftly into the hot seat segment of the show.

I think we're past the world, and I think it's kind of an accepted conclusion.

We're not going to end with just a USDT and USDC duopoly.

There are going to be multiple stablecoins.

In fact, I'll take it even further.

You really have one lever in its interest rates.

And if you're a country in South America that gets fully dollarized and your economy struggling, and theoretically it should call for lower interest rates, but hey, it's the opposite situation in America, you're in a lot of trouble.

And so I think governments are very quickly going to realize that if they don't figure out a way to create a better version of their currency in tokenized form people are going to opt to the dog because the dollar already has like a leg up of like truly being kind of the reserve currency of the world today um so i think that's one reason why there will be more Now, putting that aside, let's just talk about dollars for a second, right? Why do we need multiple, or why is there an incentive to have more, right? Now, when you have USDC or USDT or USDG or PYSD, there is an insurer that holds those assets as deposits, right? Underlying assets as deposits.

And ultimately, they're the ones that control them and monetize them, right? What this means in practice is let's imagine a world where USDG is the only stable coin and USDG goes and gets parked at Bank of America.

And that will be one bucket that you have.

The second bucket you're going to have are stablecoins, right? It's both stable coins that you're using, whether at USDC or USDT, or like we created one for ourselves on a limited use case called CloudDollar with our partner at Metallicus.

And so we work with CloudDollar.

We're working with a food co-op here nationally that they want to use that token between their settlement, between the grocers that they supply, as well as within their reward system on the chain.