Tether Plans to Provide Real-Time Updates of Reserve Data
Tether Holdings, the issuer of the largest stablecoin Tether (USDT), has announced its intention to offer real-time updates of its reserve data. Paolo Ardoino, Tether’s chief technical officer and upcoming CEO, stated that the company aims to start publishing reserve data in real time by 2024. However, Tether clarified that no specific deadline has been set for achieving this goal. Currently, Tether publishes and updates its reserves data at least once per day and also releases monthly reserve reports and conducts quarterly reserve reviews. The move towards real-time reporting aims to improve transparency and address concerns about the backing of Tether’s stablecoin.
Tether’s Growth Despite Market Downturn
In contrast to the broader cryptocurrency market experiencing downturns in 2023, Tether has continued to thrive. According to Tether’s Q2 update, the company’s assets increased by 5.7% to reach $86.5 billion. Notably, Tether reported over $1 billion in operational profit, marking a significant 30% increase from the previous quarter. Despite reducing stablecoin lending to zero in December 2022, Tether witnessed a surge in demand for its stablecoin as a lending instrument within the crypto market. In its Q2 attestation conducted by accounting firm BDO, Tether revealed an $850 million increase in excess reserves, bringing the total to $3.3 billion. The company also disclosed approximately $72 billion in indirect exposure to United States Treasuries.
Stablecoin Market Gets Crowded with PayPal’s PYUSD
In August, PayPal announced its upcoming PYUSD stablecoin, issued by Paxos. This development adds competition to the stablecoin market currently dominated by Tether and USD Coin (USDC). With its vast user base of 420 million, PayPal has the potential to disrupt the stablecoin leaderboard and drive mainstream adoption. However, William Quigley, a co-founder of Tether, believes that PayPal’s stablecoin won’t achieve significant adoption outside the United States.
Hot Take: Tether’s Push for Transparency and Market Competition
Tether’s decision to provide real-time updates of its reserve data reflects its commitment to transparency and addressing concerns in the crypto community. By offering more frequent reporting, Tether aims to enhance trust and confidence in its stablecoin. Additionally, Tether’s growth and profitability despite market downturns demonstrate its resilience and popularity within the crypto market. The entry of PayPal’s PYUSD into the stablecoin market adds competition and the potential for increased mainstream adoption. While some believe PayPal has the power to disrupt the stablecoin leaderboard, others remain skeptical about its global adoption. Overall, these developments highlight the evolving landscape of stablecoins and the importance of transparency and market competition.
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