Tether just released its most recent attestation report, which breaks down the USDT stablecoin’s reserves. Tether, the largest stablecoin UST in the industry, has published today its quarterly report on the token’s reserves.

According to reports, the USDT stablecoin has been backed by the U.S. Dollar. Holders are expected to be in a position to redeem their holdings to the same amount of greenback anytime they want, provided that the company has sufficient cash reserves.

USDT has a $67.5 billion market capitalization and is the third-largest cryptocurrency after Ethereum and Bitcoin. With so much at stake, it’s no surprise that Tether’s reserves are under constant scrutiny.

Tether’s new auditor firm BDO Italia has completed today’s independent report. It breaks down assets of the company as at June 30, 2022 and claims that the consolidated total assets were at least $66,409 619,424.

Tether stated that its consolidated assets outweighed its consolidated liabilities of $66,218,725,778.

Tether’s CTO Paolo Ardoino stated in a statement that “We are fully committed in maintaining our position as the leading stablecoin on the market.” Tether’s utility is supported by its transparency and has been a major source of stability that allows us to create a global economic tool.

Tether’s holdings of commercial paper decreased by more than 57.5% over the previous quarter, which was $8.5 billion to $20 billion. Tether stated that this is in line with its plans to reduce its exposure to commercial papers to $200 million by August 2022, and to zero before end of year.

According to the company, its cash and bank deposits increased by 32% during the reporting period.

Tether’s Q1 guarantee report, released in May, stated that 86% of the company’s reserves were in cash and short term deposits. 4.5% was in corporate bonds and 3.8% in secured loans. 6% was in “other investments,” which includes digital tokens.

Large corporations issue commercial paper as a security to cover short-term debt obligations such as inventory or payroll.

Rumours circulated earlier this year that Tether’s commercial paper portfolio contained “85%” of Chinese or Asian commercial paper and was being traded at a 30% discount.

Tether denied these claims and stated that they were invented to incite panic and generate additional profits in an already stressed market.

Tether has not revealed the names of companies that issued its commercial papers, but today’s report states that “the average rating for commercial paper and certificates to deposit has improved and continued ranging from A-1 through A-2.”

Tether declared it had hired BDO Italia to be its new accounting firm. The company will publish monthly attestation reports on USDT reserves. This will provide “considerable transparency” for holders of Tether tokens.

Many are still waiting for Tether to publish an audit report from an “Big 4” accounting company, and not an “assurance opinion,” as USDT stablecoin’s issuer calls it.



Source link

About Author

Angie Byrd