Tether Releases Assurance Report Showing Massive Surplus
Tether, the world’s largest stablecoin issuer, released an assurance report on Monday revealing its financials as of June 30. Here are the key points from the report:
– Tether holds over $3.3 billion in excess reserves to back its USDT tokens.
– The excess reserves are generated from profits and are used as insurance for the tokens.
– USDT is always convertible 1:1 for dollars within the company’s reserves.
– Tether’s stablecoins are backed by about $72.5 billion worth of Treasuries.
– Tether generated $1.5 billion in net profit in Q1 and over $1 billion between April and June.
– Tether’s consolidated total assets amount to $86.5 billion, with a near 4% surplus.
Tether’s Counterbalance
Tether aims to have reliable reserves as a counterbalance to recent bank failures caused by fractional reserve lending and duration mismatches.
No Bitcoin Updates
While Tether disclosed in Q1 that 2% of its reserves were held in Bitcoin, the latest report does not provide updates on its Bitcoin allocation. Tether CTO Paolo Ardoino clarified that only a small portion of Tether’s profits are invested in the Bitcoin mining industry.
Hot Take
Tether’s assurance report reveals a massive surplus and solidifies its commitment to transparency. The report addresses criticisms about the firm’s reserves and highlights the stability of its USDT tokens. However, the lack of updates on Tether’s Bitcoin allocation raises questions about its diversification strategy. Overall, the report reinforces Tether’s position as the leading stablecoin issuer.
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