Tether's USDT Holdings Can Be Frozen at U.S. Direction, Russian Bank Chief Warns

Russian bank Promsvyazbank (PSB) CEO Petr Fradkov has warned that USDT, one of the world's most popular stablecoins, could have its funds frozen at the direction of the U.S. administration.

Fradkov stated that Tether Limited retains full control over the USDT it issues and can freeze funds not only in accounts linked to illegal activity but also 'simply at the direction of the U.S. administration.'

This is a concern for Russia, as Fradkov noted that significant assets belonging to holders from Iran and Russia have been blocked in recent years.

PSB decided to develop its own digital financial instruments and payment infrastructure due to this dependence on the dollar and the U.S. debt market.