Tether, the El Salvador-based firm behind USDT, the world's largest stablecoin, has emerged as a powerhouse in global finance with little fanfare. But beneath its enigmatic exterior lies a financial giant storing over £101 billion of US Government debt – more than held by some G20 member states. European Central Bank data reveals that Tether was also the single biggest buyer of gold last year, stashing its reserves in a former nuclear bunker in Switzerland.
As its financial footprint grows, so too has scrutiny over Tether's secretive operations. A key factor in this attention is its unexpected connection to Nigel Farage's Reform party through significant shareholder Christopher Harborne. In the past few months alone, Harborne made unprecedented donations of £9 million (August), £3 million (October), and a further £3 million (January) – all declared. This follows his personal gift of £5 million to Farage, which sparked parliamentary investigations before Farage resigned as an MP. Both claim no conditions were attached to either donation.
This entanglement has coincided with Farage's vocal advocacy for the UK becoming a hub for cryptocurrency, including meetings with Bank of England Governor Andrew Bailey last September. He expressed concerns over speculation about central bank digital currencies and proposed limits on sterling stablecoin holdings, sparking opposition from the crypto industry. While not directly naming Tether, his discussion was centred around stablecoin regulation in general.
Farage has publicly championed the sector, stating that London should "embrace" it under proper regulation. This sentiment aligns with Reform's policy stance on cryptocurrency and digital finance, outlined in its draft 'Cryptoassets and Digital Finance Bill' from last May. Although removed from their website, the party asserts this remains current policy, citing reasons related to website updates.