Who’s making 5% risk free?
Can you point me in their direction?
Can you point me in their direction?
It’s what every insurance company and bank does.
Or if you don’t want to do that, put it in treasuries or something and take your 1,2,3% of whatever it may be.
Tether could have replicated either strategy, but seems to not have.
They could also have profited from those that lost their keys (it happens).
In addition you have to keep in mind that it is also about absolute numbers. No one invested these billions with them, no one is charging them some kind of relative rent. Every dollar is profit. If you could make 0.001% off storing 5 billion, that would still be an attractive business model.