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They still have tier 1 and tier 2 equity requirements. This isn’t really analogous.

• SilasX 5y ago
  Oh, and Tether is holding assets that wouldn’t meet those requirements? Sorry, wasn’t sure if you meant that as a difference.
  • jcranmer 5y ago
    No, Tether is not. The equity and capital buffer requirements are somewhat more complicated to explain simply, but the end result is that a bank needs at least ~8% of cash outright to meet those requirements. Tether has less than 1/10th the amount of cash it would be required to have were it a bank.
    • FabHK 5y ago
      Agreed. At most 1/30 of what would be required.