The Highest Percentage of Cash and Cash Equivalents in Tether’s Reserves Ever Recorded
Tether, the stablecoin issuer, has released a new attestation report from accounting firm BDO, revealing that approximately 86% of its reserves consisted of cash and cash equivalents as of September 30. This is the highest percentage of cash and cash equivalents ever recorded in Tether’s reserves. The report indicates that $56.6 billion worth of reserves are invested in U.S. Treasury bills with a maturity date of less than 90 days, while an additional $8.8 billion is held in reverse repurchase agreements involving these bills.
Reduced Reliance on Secured Loans
The report also highlights that Tether has significantly reduced its reliance on secured loans as a means of raising revenue. Secured loans now account for only $5.1 billion of USDT reserves, which is $336 million less than what was reported previously. Tether faced criticism in September for continuing to make secured loans despite previously stating that it would wind them down.
Further Reduction in Loans Expected
Tether has announced its plans to further reduce loans by the end of October 31. An additional $1.1 billion in loans will be wound down, leaving only $900 million in loans as part of the reserves.
BDO Attestations and Future Auditing Plans
BDO publishes attestations of Tether’s reserves every quarter, with a one-month lag between the end of the quarter and the publication of the report. Tether has stated its intention to introduce a system for real-time audit reports by 2024.
Hot Take: Tether’s Reserves Show Record High Percentage of Cash and Cash Equivalents
Tether’s latest attestation report reveals that the stablecoin issuer now holds the highest percentage of cash and cash equivalents in its reserves. This demonstrates Tether’s commitment to maintaining a strong backing for its stablecoin. The reduction in secured loans also signifies a positive move towards a more transparent and sustainable financial model. With plans for real-time audit reports in the future, Tether aims to further enhance trust and confidence in its operations.
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