Tether plans to issue two commodity-pegged stablecoins

Tether Ltd. is planning to issue two new stablecoins, one pegged to a basket of commodities and another to the Chinese renminbi, according to Zhao Dong, an over-the-counter trader in China and a shareholder of Bitfinex.

In 2018, iFinex Inc.-a privately held financial technology company based in the British Virgin Islands that operates Bitfinex and owns Tether Ltd.- handed $850 million over to Crypto Capital Corp., a Panamanian payment processor, in order for them to handle Bitfinex customers-fiat-withdrawals requests.

After the agreement was made, the funds were seized by American, Polish and Portuguese authorities.

Due to the risks associated with keeping large sums of money on a single entity, Tether will release a stablecoin backed by a basket of commodities such as gold, crude oil and rubber, stated Zhao Dong in an interview with Cointelegraph.

The firm is planning to create a stablecoin that is pegged to the Chinese renminbi.

"CNHT will not interfere with PBOC even if you don't calculate this 650 million as reserves the total amount backed by USD is 83.75% and not 72 percent as fake news are reporting."

Tether's intention to issue two new stablecoins comes while its parent company, iFinex Inc., remains under investigation by the New York Attorney General for fraudulently covering up an $850 million loss of "Co-mingled client and corporate funds".