#TradeFiRevolution TradeFi from Tether? Yes, it's a bold move — 'a revolution in global trade,' blockchain, oil, copper, all that... But let's face the facts:
1. Regulators — Wolves in Suits
The EU has already tightened the noose around USDT. Starting January 1, 2025 — a ban on regulated platforms. Europe is a juicy piece of the market, and Tether is not allowed in. Why? Because MiCA requires holding 60% of reserves in European banks. And Tether, like a stubborn teenager, refuses: 'Euro banks are weaklings, their deposits are only insured up to $100k.' The result? Coinbase, OKX have already kicked USDT out of the EU. Trading oil through TradeFi in Europe? Forget it. It's like trying to sell vodka in a dry state.
2. Holes in Reserves — A Skeleton in the Closet.
Tether is a black box. Yes, they say every USDT is backed by a dollar. But their reserves are a cocktail of treasury securities (61%), corporate debt (24%), and 'other stuff' (15%), including crypto and questionable loans. If oil in TradeFi circulates through these reserves, any market shake-up — and that's it, depeg. Hedge funds are already betting millions on the fall of USDT. Remember Luna? Everyone was laughing there too, until it was too late.
3. The Legal Meat Grinder.
The U.S. Department of Justice is digging into Tether. Investigations, allegations of money laundering, connections to criminal networks... Now imagine: TradeFi is billions in deals. If regulators squeeze Tether, all their 'global trading' will turn into lawsuits. And yes, Trump is involved — his people are connected to Cantor Fitzgerald, which is friendly with Tether. Politics + crypto = a volatile mix.
4. Competitors — A Pack of Hungry Jackals
While Tether is fighting with the EU, USDC from Circle has already received its MiCA license and is ready to gobble up their market share. Europeans will switch to USDC, and TradeFi will remain a niche toy for Asia and the Middle East. Yes, Tether is trying to issue EURQ and USDQ through Quantoz, but it's like changing a tire on a flying car.
5. Trust — A Fragile Toy.
Tether is a master at creating FUD (fear, uncertainty, doubt). Sometimes the reserves are opaque, sometimes links to Bitfinex pop up, sometimes accounts are frozen. TradeFi wants to be the face of 'professional' trading? Serious players will think twice before getting involved with a company that has a reputation darker than a bitcoin miner.
The bottom line:
TradeFi is a pretty wrapper on a ticking time bomb. Yes, there's potential: lower costs, blockchain, USDT liquidity... But the risks? Wow. If USDT crashes, TradeFi will die the same day. If regulators get to Tether — the project becomes history. And for now — it's a bet that market greed will outweigh fear.
Advice: Keep USDT only for short-term trades. And don't blindly believe in 'revolutions.' In the world of finance, revolutionaries are often hanged on the first gallows.