Stablecoin issuer Tether Holdings Limited released its Consolidated Reserve Report (CRR) for Q3 2023. It noted that the company marked significant achievements in managing cash reserves to back its flagship stablecoin Tether USD, popularly known as USDT. In addition, it successfully managed to minimize secured loans by a notable number.
According to an October 31, 2023, released blog post, Tether noted that BDO, one of the top five global independent accounting firms, recognized it in its recently published assurance opinion. This attestment exercise from the firm on Tether found the results the same as the company’s own CRR for the quarter that ended in September 2023.
As per the post, the percentage of cash and cash equivalents in stablecoin reserves reached a whopping 85.7%. This achievement acts as a milestone for the company as it is the highest recorded percentage of reserves ever for cash.
The overall reserve for USDT stablecoin remained equal to or even higher than the number of digital assets in circulation. Until September 2023, there were $83.2 Billion in USDT reserves distributed among cash and other investments such as gold and Bitcoin (BTC).
Interestingly, the cash and cash equivalent metric had majority holdings of United States Treasury Bills, or US T-bills. The company holdings in these T-bills account for about $72.6 Billion.
A Treasury bill (T-Bill) is a short-term U.S. government debt obligation backed by the Treasury Department with a maturity of one year or less.
Other than the bills, the company held Bitcoin worth $1.7 Billion and invested $3.1 Billion in gold. Additionally, $3.7 Billion worth of funds were allocated to other reserves.
In addition, $3.2 Billion was kept in excess reserves and there were secured loans worth $2 Billion.
Furthermore, the company threw off the estimate of reserve for USDT by October 31, 2023. This noted that the company would have $4.2 Billion in excess reserves and only $0.9 Billion would be left in secured loans on Tether.
Currently, there are over 84.80 Billion USDT stablecoins coins in circulation.
Paolo Ardoino Rejoices on Tether’s Reserves Management
CEO of Tether, Paolo Ardoino stated that the attestation of Tether for the third quarter showcases the company’s “commitment to transparency, stability, and responsible financial management.
Citing the achievement of massive cash and cash equivalents percentage in reserves, Ardoino noted that this represents Tether is dedicated to maintaining liquidity and seeks stability in the stablecoin ecosystem through this. Also, as the company minimized the secured loans, he further noted that this is the result of the company’s “robust risk management strategies.”
“We are proud of the robustness of Tether’s operational profits, showcasing our financial strength and resilience. Moreover, our investments in sustainable energy, Bitcoin mining, data, and P2P technology exemplify our commitment to building a more sustainable and inclusive financial future for all.”
Source: https://www.thecoinrepublic.com/2023/11/01/tether-releases-q3-2023-attestment-report-cash-reserves-cross-70m/