[pjc50]

People are wiring $100mn a day into an exchange that has no known banking facilities?

> OTC counter, which has been known to broker trades

How do we know this?

> clearly values Tether at around $1USD

It's currently slightly above $1USD, which makes no sense for a risk-bearing asset. Tethers probably correspond best to an open-ended zero-coupon $1 bond. Why do they have negative yield? I can just about understand CHF gov bonds having negative yield but negative tether yield? Really?

[dragonwriter]

If tether can be used for trading in venues where real USD can not be used, they have additional value to a certain classes of users (who will bid up the price) on top of the value as a “thing that can maybe be redeemed somehow at face value for USD”, which could support a premium price.