Remember how the Tether story started? In 2014, a coin called Realcoin appeared, which was later rebranded to USDT. The rebrand helped the project stand out from the mass of cryptocurrencies, emphasizing its specialization of moving dollars on the blockchain. It’s hard to imagine now, but the company didn’t really bother proving that the issued USDT was backed by real dollars. Audits were sporadic and nobody cared; the stablecoin’s market cap grew almost linearly and the token reached 3rd place in the crypto rankings.

Major banks wouldn’t work with Tether, so billions of dollars were distributed through offshore entities. This led to the disappearance of a third of its reserve fund due to third parties in 2018. The company kept quiet about the financial hole, and when it was revealed in a US court, a crypto winter hit. And right around that time, when US justice forced Tether to undergo constant audits, the tangled story began.

Howard Lutnick, now the US Secretary of Commerce but then the head of Cantor Fitzgerald, suggested Tether change its business model. Instead of 100% backing the issuance of USDT with dollars, the fund began buying corporate bonds and even issuing loans. The fund’s securities were held by the Cantor Fitzgerald bank. At one point, the company bought up 40% of US corporate debt, attracting close attention from the Federal Reserve.

And then Tether, registered in Hong Kong by the way, started actively dumping junk bonds, buying Treasury Bills instead. Its buying spree of US government debt accidentally coincided with China’s massive sell-off of Treasuries. And now Tether is in the top 10 holders of these bonds.

Right now, Tether is busy launching USAT, a token that will comply with new US laws, and its market cap could quickly surpass USDT. All because the advisor to crypto bank Anchorage Digital was Kevin Warsh, nominated by Donald Trump for the Fed Chairman position.

So here’s the one thing I find really interesting in this whole story: Did Tether gain the US Secretary of Commerce and a future Fed Chairman as allies, or did the American financial bloc take control of the “global crypto-dollar”?