Tether Founder Shares How Goldman Sachs Shrugged off USDT Back in 2015
May 28th, 2020
Tether founder, Craig Sellars, shares an interesting story of a billion-dollar opportunity missed by Goldman Sachs.
In the aftermath of the Goldman Sachs report on Bitcoin and Gold, Crypto Twitter goes gaga over what was intended to be criticism. Leading Bitcoiners slammed their view and the general consensus was that the multi-national bank was attempting to mislead. Tone Vays, derivatives trader and crypto analyst notes,
Although, this isn’t the first time when Goldman Sachs has rejected the blockchain space. Tether Creator, Sellars shares an interesting story from a proposal meeting in 2015. He tweeted,
In 2015, I went to Goldman Sachs and said “Tether is a central bank in a box. Do you want it?” They asked, “why would anyone want a dollar on a blockchain?” I replied “Because it’s the dollar. On a blockchain.”
They laughed me out of the room.
Currently, Tether has issued over $9 billion in USDT, making it the third-largest cryptocurrency with respect to market capitalization.
A Jibe at USDC Circle Too?
Sellars not only belittled Goldman Sachs with the success of Tether but also went on to criticize USDC. It is the second-largest stablecoin with around $740 million issued in the markets. PAX follows Circle with 1/3 of the supply of USDC.
Sellars play of words criticise the design behind Circle. He says,
Notice the replacement of ‘the dollar’, with ‘a dollar’ with the addition of ‘Kinda.’ Circle is a well-established blockchain start-up, with investors including Goldman Sachs Group, Baidu, and Bitmain. According to the Circle webpage,
USDC is issued by regulated financial institutions and backed by fully reserved assets, and redeemable on a 1:1 basis for US dollars.
While it does not state that is backed 1:1 by the US dollar, neither does Tether. Tether is backed by its reserves as well. It includes ‘traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties.’ Nevertheless, the criticism by Sellars seems to point at less transparency and more control from the Circle management.