Tether Fully Backed with Reserves Also Held in Digital Tokens and Precious Metal: New Assurance Report
Tether Holdings Limited has released an assurance report by Moore Cayman on Monday for the period ending June 30, as per its continued commitment to transparency.
As of writing, with a market cap of almost $63 billion, USDT accounts for 57% of the stablecoin market share. Paolo Ardoino, CTO at Tether and its sister company Bitfinex, said in a statement.
“As an industry leader, we understand the importance of transparency and accountability. Our most recent assurance opinion from Moore Cayman again confirms Tether is fully backed.”
According to the report, 85% of Tether’s nearly $62.78 billion supply is held in cash and cash equivalents and other short-term deposits and commercial paper.
Out of this $53.37 billion, almost $6.3 is in cash and bank deposits, $1 billion in reverse report notes, $15.27 billion in Treasury bills. The majority of it, $30.8 billion, is held in commercial paper and certificates of deposit whose rating ranges from A-1+ to A-3 and has an average duration of 150 days.
“Tether is fully backed. S&P provides a rating of commercial papers,” Ardoino said in a tweet.
Besides this, Tether has just over $2.5 billion in secured loans, none to affiliated entities, and $4.83 billion in corporate bonds, funds, and precious metals. Just over $2 billion is also held by Tether in other investments, including digital assets, which are valued at the lower of cost or fair market value “exceeds the amount required to redeem the digital asset tokens issued.”
The report particularly mentions Tether Gold (XAU₮), digital tokens representing ownership of physical gold. XAU₮ tokens available for sale to users but not yet sold to them are included in the consolidated group’s asset reserves. As per the report, gold is valued at fair market value.
“The group’s consolidated assets exceed its consolidated liabilities,” says Moore Cayman in the report.