Gregory Pepin, deputy CEO of Deltec Bank and Trust, responds to allegations in a blog post by the pseudonymous Crypto Anonymous, that Tether is a "highly probably fraud." In this episode, he covers:

how Deltec accounts for its reserves, and why they didn't show up on Crypto Anonymous's blog post
where the dollars backing Tethers are held
how Tethers get created
where Tether Ltd. keeps its cash equivalents
why there's more demand for trading with USDT than with USD partially because of the arbitrage opportunity between East and West
how Tethers get created using Deltec
why USDT gets minted in very round numbers as opposed to very specific numbers that USDC is minted in
where the cash equivalents backing Tethers are held
what type of due diligence Deltec conducted when it took on Tether Ltd. as a customer
why the perception that Tether is unregulated compared to other stablecoins is false
what Deltec thinks about the New York Attorney General office's investigation in to Tether
why Deltec has a "large position in bitcoin"