Tether has publicly listed a company that partially controls USDS

Tether invested $134 million in failing biopharmaceutical firm NovaBay in March, turning it into a stablecoin holding company.

The move completely altered the path of the New York Stock Exchange-listed corporation. Its name was changed to Stablecoin Development Corporat, and it was used to purchase and stake a large swath of rival stablecoin USDS (previously known as MakerDAO).

USDS, unlike Tether or USDC, is a decentralized stablecoin that’s pegged to the US dollar through overcollateralized vaults and automated liquidations. Centralized stablecoins like Tether and USDC rely on real-world assets, such as Treasury bills, overnight repo agreements, loans, and precious metals.

USDS is unrestrained by hypothetical audits, financial statements, or bank runs.

Interesting investment, but it’s not working out

The decision to reverse-merge with NovaBay so that Tether could make a not-insignificant investment in USDS and continue to accumulate and stake the stablecoin was certainly an interesting choice from the c-suite at Digifinex.

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