Deltec, the offshore bank of which Tether is a client, purchased a large amount of Bitcoin for clients, according to one executive who spoke about the investment in a video on Jan. 13.
- Hugo Rogers, Chief Investment Officer of Deltec, said in a 2020 review that Deltec’s holdings included a “large position in Bitcoin”
- While not disclosing the specific amount, Rogers said that the bank had bought Bitcoin at $9,300 for clients in 2020 and that it is expected to do well in 2021 “as the liquidity crisis runs hot”, referring to monetary policies instituted by governments
- Deltec is known for holding Tether’s cash reserves that back up Tether’s massive circulating supply of just over $24 billion in USDT
- It is not clear who the client is, as Deltec serves multiple entities in the crypto space, including derivatives exchange FTX
- Tether’s dollar reserves continue to be a subject of debate in the crypto-community; meanwhile, the New York Attorney General’s office is continuing its investigation into Bitfinex and Tether’s finances
- Bitfinex CTO Paolo Ardoino has tried to stamp out investor concern, taking to Twitter to say that the US SEC would not target Tether
