The secretive crypto firm backed by Farage's biggest donor
Tether is a giant in crytocurrency, an industry that Nigel Farage believes the UK should be embracing.
The enigmatic cryptocurrency company supported by Farage's largest benefactor
Reform UK leader Nigel Farage
Who is the leading buyer of the globe's most sought-after asset—gold?
Could it be China? Japan? Or perhaps one of the Gulf nations?
Surprisingly, the top purchaser of the precious metal last year was a relatively unknown entity—a cryptocurrency firm named Tether.
Based in El Salvador, Tether operates USDT, the largest stablecoin worldwide, which is a type of cryptocurrency backed by tangible currency.
It acts as a bridge between more volatile cryptocurrencies and traditional finance, essentially functioning as an offshore dollar.
According to data from the European Central Bank, Tether acquired more gold last year than any other entity.
The gold is stored in a former Swiss nuclear bunker reminiscent of a James Bond film, as stated by Tether's CEO.
Tether also claims to hold US Government debt amounting to approximately $135 billion (£101 billion), surpassing the holdings of South Korea.
This positions Tether as a significant player, resembling a private central bank, despite having only 200 employees.
Moreover, it is inadvertently linked to the funding inquiries surrounding Nigel Farage's Reform party.
One of Tether's major shareholders is Christopher Harborne.
In August of last year, Harborne donated £9 million to Farage's Reform party—the largest political donation in British history. He followed this with an additional £3 million in October and another £3 million in January, all of which were officially declared.
Harborne had previously given £5 million directly to Farage, a personal gift that had not been disclosed and was investigated by Parliament before Farage stepped down as an MP.
Both Farage and Harborne have asserted that there were no conditions tied to the personal gift or the political contributions to Reform.
Andrew Bailey, the governor of the Bank of England, recently confirmed that Farage discussed cryptocurrency regulation and central bank digital currencies with him in September of last year.
He noted that Farage was "very clear" about his views, but that the "intervention" did not alter the Bank's policy, and he was adept at recognizing "lobbying" and could discount it.
Farage was particularly concerned about speculation that the Bank of England might impose limits on holdings of potential sterling stablecoins, ranging from £10,000 to £20,000.
The industry was actively lobbying against such measures.
It is understood that Farage did not specifically mention Tether to the governor, but he did address stablecoin regulation in general.
This raises pertinent questions about the specifics of that conversation and the potential benefits to Tether and its shareholders from any changes in Bank of England policy.
Farage had previously expressed his support for cryptocurrencies, stating, "Tether is about to be valued as a $500 billion company," during an interview with LBC presenter Nick Ferrari in September, just a day before meeting with Bailey.
"This world is enormous, and I've been urging for years that London should embrace it. We should become a global trading center for this sector under proper regulation."
Regarding the broader discussion, Farage's team asserts that "his remarks to Andrew Bailey align with his long-standing belief that the UK should be a global hub for regulated cryptocurrency innovation and investment."
In line with this, last May, when Reform was leading in the polls, the only draft legislation it published was its Cryptoassets and Digital Finance Bill.
This bill briefly mentioned stablecoins but did not address the Bank's existing plan to limit personal holdings.
I reviewed and downloaded the document.
It has since been removed from the Reform website and is no longer available online.
The Bank of England's governor Andrew Bailey confirmed a discussion with Nigel Farage.
Reform informed the BBC that the bill remains party policy, but they regularly update the website to reflect the latest announcements.
Three months later, stablecoin regulation has become a central topic in Reform's discussions with the Bank of England, as the official consultation only began last November.
It is crucial to recognize that Bailey is not only the head of the Bank of England but also chairs the Financial Stability Board, the international financial regulation body. Thus, he is arguably the most significant non-American figure in the regulation of cryptocurrencies and stablecoins, reporting directly to G7 and G20 summits.
He has voiced concerns that stablecoins could be destabilizing if viewed as a form of money without guarantees of maintaining their value.
This industry is highly sensitive to financial regulation.
Some context from across the Atlantic sheds light on this.
In July of last year, the Trump administration enacted the Genius Act, effectively legitimizing stablecoins under certain regulations in the US.
Following this, one provider, Circle, went public in New York and saw its value increase tenfold in just three weeks.
During this time, Tether and its advisors prepared for a capital raise that would value the much larger stablecoin at $500 billion.
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