• Tether (USDT) cash equivalents have increased to 85 percent, according to the company

  • Tether Holdings Limited, the company behind the world’s largest stablecoin by market capitalization, revealed more information about its reserves in an assurance opinion issued by Moore Cayman, an audit services provider, which concluded that the information in the company’s Consolidated Reserves Report (CRR) is correct.

    The reserves of Tether

    According to the independent accountant’s report, “the group’s consolidated assets exceed its consolidated liabilities,” which reviewed Tether’s most recent CRR and determined that the issuer met its reserve obligations for the period ending June 30, 2021.

    “The group’s reserves held for its digital assets issued exceed the amount required to redeem the digital asset tokens issued,” according to the opinion, which also included a breakdown of the company’s assets, which the accountant claims are worth $62.77 billion.

    According to the May report, as of March 31, 2021, Tether claimed to have held more than 75% of their $42 billion in funds in cash and cash equivalents, the majority of which was in the form of commercial paper.

    According to the most recent reserve breakdown, cash and cash equivalents accounted for roughly 85 percent of Tether’s total assets, or $53.3 billion, including $30.8 billion in commercial paper and certificates of deposit, $6.2 billion in cash and bank deposits, $1 billion in reverse repo notes, and $15.2 billion in Treasury bills.

    Secured loans not related to any of Tether’s affiliates totaled $2.5 billion, and the company also owns more than $4.8 billion in corporate bonds, funds, and precious metals.

    A little more than $2 billion is held in “other investments,” which include digital tokens.

    Tether’s cash and cash equivalents have increased from 75.85 percent to 85 percent, and its crypto holdings have increased from 1.64 percent to 3.3 percent, potentially increasing 1.5 billion in cryptocurrency. More money is also a positive sign. August 9, 2021 — Wu Blockchain (@WuBlockchain)

    Tether’s function

    Tether plays a significant role in the crypto ecosystem, and the stablecoin token, which is currently issued on the Ethereum, Tron, EOS, Liquid, Algorand, SLP, Solana, and Omni layer blockchains, has the highest daily trading volume of approximately $77 billion.

    Tether is the world’s third-largest cryptocurrency by market cap, after Bitcoin (BTC) and Ethereum (ETH), though its share of the overall stablecoin market has been declining as competitors such as USD Coin (USDC) have grown in popularity.

    Recent FUD surrounding the stablecoin’s issuance has been fueled by increased regulatory scrutiny, which claims the market sector is endangering financial stability.

    What's your reaction?