Tether: The Kingmaker
Bitcoin and Crypto are Capital Flows
Capital flow is the bloodstream of global markets. When capital flees a region, its currency dies. When capital floods in, asset prices rise regardless of fundamentals. The most basic we hear about are interest rates, the higher the rate the less capital goes into the markets and into savings. The newest is Crypto.
The biggest player are stablecoins. Stablecoins today settle more daily economic activity than Visa or Mastercard. This type of cryptocurrency is pegged normally to the US Dollar by owning assets, usually Treasuries. The biggest of them all is Tether.
Meanwhile, Tether, the company with no military, no borders, no diplomats,
no aircraft carriers, and not even a physical office you can visit without GPS coordinates, parleyed their growing profits into BTC and Gold.
Their gold holdings are now more than most countries.
Hungary was part of the Austro-Hungary empire, which was known as the Holy Roman Empire. So Tether owns more gold than Rome at its demise.
Let me say that again:
Tether owns more gold than nations with armies.
Rome needed legions.
Britain needed the Royal Navy.
China needs the PLA.
Russia needs tanks (in theory).
Empires used armies to accumulate gold. Tether used liquidity incentives and distrust:
fear
capital flight
broken currencies
and offshore liquidity rails
Tether didn’t dominate because it was loved, it dominated because governments were feared. Tether is now the shadow central bank of the developing world.
A pirate Central Bank.
A digital Cayman Island.
A sovereign wealth fund with no sovereign.
It’s as if the fabled East India Company if it ran on memes and AWS.
But they do have partner, Cantor Fitzgerald, from NYC. An offer was made to them that they probably couldn’t refuse. It is working very well.
With Cantor Fitzgerald acting as custodian for Tether’s Treasuries, the relationship moved from offshore crypto chaos into the very heart of U.S. financial plumbing as Cantor’s former CEO, Howard Lutnick, sits in the Trump Administration as Commerce Secretary.
It doesn’t mean Cantor controls Tether but it does mean Tether’s survival is no longer purely offshore.
From Bloomberg, Cantor is having a stellar year:
But someone has to rain down on the parade and the is S&P Global who rated Tether as the least trustworthy investment since it’s not fully audited.
The popular blog, QTR, weighs in that Tether does, indeed, need to be rated.
While I do like audited results just like anyone there are probably motives outside of financials that prevent Tether in allowing this. They were stellar, afterall, in the Crypto carnage of 2022. From my perspective, the audit is a politically motivated stunt that will only reveal to governments that true profitability of Tether to their shame. And allow them time to figure out how to screw them out of their assets
As for Standard and Poors, they are not impartial, they have been wrong on the big events and downgrade after the event occurs. Here are a few: 2015 Chinese debt 2010-12 European debt crisis, 2008 real estate crash, 2000 Enron and Worldcom fiasco.
Cantor Fitzgerald, may have been wrong a few times, but the ceo did two things that no one can take away from him.
He managed the losses of many of the employees during September 11 and made sure the deceased families were compensated.
He’s a mensch. And his handshake means something.
Cantor, and not Goldman, is participating in the hallowed halls of Washington in the Executive office.
So that’s who Tether’s partner is.
A blue blooded Wall Street establishment who realized that
**Crypto isn’t just another asset class —
it’s becoming the pressure valve for the entire global financial system.**
It’s the only “safe” way to reboot an over-leveraged world without a real war.
If it’s true that Bitcoin won’t be taxed on appreciation unlike your income and all the other traders over the years then this is the biggest windfall of mankind for all the holder of Bitcoin since its inception.
And Tether — the pirate central bank — is the liquidity engine behind that boom/bust cycle. They take part of their profit of yield from treasuries to buy BTC and Gold now. I’m sure they are in overdrive buying Bitcoin from all these longterm holders.
These Bitcoin millionaires and billionaire are probably going to express their appreciation to Trump in the midterms and something to watch.
With all this money what to do?
Maybe buy Tether now, which then buys Treasuries and props up that market.
Once this occurs, we may think about if Tether does an Airdrop to token holders? Or pays a yield to token holders.
If Tether ever pays yield, it becomes the first global citizen-run central bank in history.
(An airdrop is something popular in cryptoverse and are incentives to keep liking a specific token)
They aren’t stupid.
They know crypto is no longer a toy.
It’s the NEW eurodollar.
The shadow world reserve.
In 1944 the world created Bretton Woods.
In 1971 the U.S. broke the gold window.
In 2008 the Fed became the global dollar backstop.
In 2025 a new monetary empire is forming — offshore, digital, and market-driven.
And its name isn’t Bitcoin.
Its name is USDT.
TODAY, right now, understanding Tether and Stablecoin metrics help predict:
the fall of emerging market currencies
the rise of offshore dollars (Eurodollar market)
Next phase of the U.S.–China monetary war
👉 Paid subscribers — here’s why a NEW monetary empire is being born in real time, and why the REAL war isn’t Bitcoin… it’s USDT and its implications.
