Silver Point

Thomas J. Monaco

Independent Insight Provider

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

Thematic (Sector/Industry)

China Financials / Thematic (Sector/Industry)

*Mainland China Crackdown: Unsurprisingly, this past week mainland China has continued its steady official crackdown on cryptoccurency, reiterating its ban on providing cryptocurrency services, placing pressure on bitcoin miners, etc; and *Tether Flows: Given the mainland Chinese crackdown, it would appear that investors don't understand Tether’s systemic risks; and/or mainland Chinese-based investors are aggressively moving funds out of the country via this channel prior to it being shut down completely. If  authorities decide the shut the Tether channel over its use for moving large amounts of capital out of mainland China, cryptocurrency market liquidity would essentially dry up as Tether accounts for over 60% of global cryptocurrency daily trading volumes.

*Mainland China Crackdown: Unsurprisingly, this past week mainland China has continued its steady official crackdown on cryptoccurency, reiterating its ban on providing cryptocurrency services, placing pressure on bitcoin miners, etc; and *Tether Flows: Given the mainland Chinese crackdown, it would appear that investors don't understand Tether’s systemic risks; and/or mainland Chinese-based investors are aggressively moving funds out of the country via this channel prior to it being shut down completely. If  authorities decide the shut the Tether channel over its use for moving large amounts of capital out of mainland China, cryptocurrency market liquidity would essentially dry up as Tether accounts for over 60% of global cryptocurrency daily trading volumes. 

Tether – Holding On By A String