[twelve40]

I mostly agree and I'm actually amazed at how FTX was doing crazy shit instead of just making exchange money the legal way, but... isn't it super-expensive to truly back up tether with cash? I mean, it's kind of an extraordinary claim that they have a few bil of cash stashed in a mattress just sitting there backing things up 1:1 ready to get withdrawn any second.

[dnadler]

It wouldn’t need to be cash per say, just cash or very liquid and low risk assets like USTs. The yield on treasuries isn’t high, but given the volumes at play it’d generate a lot of cashflow.

[twelve40]

so you think they really have it?