Stablecoin Mechanics 2: Tether-Celsius

The Tether-Celsius Ops Account

Address 0xD41CdB2A35a666e8e1F9F53054e85091b67E13Af is fascinating. This wallet transferred over a billion in USDT to Celsius. Mike Burgersburg independently found this wallet surely via different methods. We dig in sometimes overlapping fields.

What Does This Mean: Tether

Tether was supposed to cease doing business in New York from early 2021. This looks like clear evidence they dealt with Celsius after that date. And not just for some routine stablecoin issuance that maybe went through a intermediary: direct dealing in collateralized loans.

This chart contains about 3 thousand USDT prints on Ethereum. How many of those have an interesting story?
The top red dot is the well-known treasury.
Direct recipients. Fewer than 100 here.
Two levels out. About half.
Three levels. That’s about 85% of the “large recipients” this filter found.

What Does This Mean: Celsius

This also tells us a lot about the Celsius business model. The stated plan was to borrow crypto from end users, lend it out to institutions, and use some of that spread to fund operations. They were going to find yield by tapping new lenders and being more efficient.

Stablecoin Flows

Celsius is interesting in the way all financial services industry collapses are. And there are surely lessons to learn for regulators, traders, investors and the like. But that is not our real purpose here.

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