{"id":12419,"date":"2022-05-21T12:41:49","date_gmt":"2022-05-21T12:41:49","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/tether-reserves-are-fully-backed-says-firms-cto\/"},"modified":"2022-05-21T12:41:49","modified_gmt":"2022-05-21T12:41:49","slug":"tether-reserves-are-fully-backed-says-firms-cto","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/tether-reserves-are-fully-backed-says-firms-cto\/","title":{"rendered":"Tether reserves are fully backed, says firms CTO"},"content":{"rendered":"

(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum & Crypto News )<\/b>
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Tether has released an attestation report showing that the USDT stablecoin reserves are \u201cfully backed.\u201d<\/p>\n

Prepared by independent accountants MHA Cayman, the\u00a0attestation<\/u><\/a> also shows that Tether\u2019s consolidated assets exceed liabilities, with consolidated reserves for issued USDT exceeding the amount needed to redeem these.<\/p>\n

Less in commercial papers, more in US Treasury bills<\/h2>\n

According to the company\u2019s assurance report, consolidated total assets as of 31 March stood at more than $82.4 billion. Tether\u2019s circulating supply is\u00a074,213,168,169, data on CoinGecko shows.<\/p>\n

At the same time, Tether has reduced its commercial paper holdings, one of the key contestations that have over the last couple of years informed increased criticism of the stablecoin issuer.<\/p>\n

Per its report, commercial paper holdings fell 17% over the last quarter, from $24.2 billion to $20.1 billion. Holdings in commercial paper have also fallen 20% since 1 April, statistics that will reflect in its Q2 report.<\/p>\n

As Tether reduces the more illiquid commercial paper holdings, it\u2019s moved to increase assets in money market funds and US Treasury bills. This has seen investments in T-bills jump 13%, from $34.5 billion to $39.2 billion.<\/p>\n

Tether CTO reiterates that USDT is fully backed<\/h2>\n

With this report, Tether is telling the market that USDT is backed and that the stablecoin won\u2019t collapse as TerraUSD (UST) did. That USDT reserves are accounted for and that the stablecoin will continue to maintain its dollar peg.\u00a0<\/p>\n

But is this enough to enhance the crypto community\u2019s trust in USDT?<\/p>\n

Three Arrows Capital co-founder and CEO Su Zhu says USDT\u2019s $9 billion wipeout over the past week proves that indeed \u201cUSDT is redeemable\u201d for USD. Some within the industry still don\u2019t trust Tether\u2019s word.<\/p>\n

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This proves the opposite, which is that USDT is redeemable, in size, for USD https:\/\/t.co\/FI9Vk0LjFP<\/a><\/p>\n

\u2014 Zhu Su \ud83d\udd3a\ud83c\udf15 (@zhusu) May 18, 2022<\/a><\/p>\n<\/blockquote>\n

Paolo Ardoino, Tether CTO, commented on this aspect, noting:<\/p>\n

\u201cThis past week is a clear example of the strength and resilience of Tether. Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never once failed to honor a redemption request from any of its verified customers<\/em>.\u201d<\/p>\n

According to the Ardoino, the independent opinion indicates that USDT \u201cis fully backed and that the composition of its reserves is strong, conservative, and liquid<\/em>.\u201d<\/p>\n

Tether\u2019s USDT is the largest and the most utilised US-dollar pegged stablecoin in the market today. It dominates the stablecoin market in terms of daily trading volume- CoinGecko shows that at the time of writing, USDT\u2019s 24-hour volume was over $51.6 billion.<\/p>\n

The next largest stablecoin is USD Coin (USDC), issued by Circle, a US-based Financial Services Company. \u00a0 USDC\u2019s 24-hour trading volume was just over $7 billion on Thursday (12:10 pm ET).<\/p>\n<\/p><\/div>\n