Cryptheory – Just Crypto

Cryptocurrencies are our life! Get an Overview of Market News

Tether Is Backed by Nearly 50% Commercial Paper Says New Report

2 min read

Tether Is Backed by Nearly 50% Commercial Paper Says New Report

Tether, the firm behind the stablecoin USDT, has released an assurance report that provides a breakdown of the company’s consolidated assets.

Per the report, Tether has a total backing of $62.7 billion, which is roughly the same as the total market cap for the industry’s most popular stablecoin.

The minor discrepancy between CoinGecko’s current figure of $62.8 billion is likely due to the lapse between now and when the latest assurance report was executed. The report was conducted by Moore Cayman, a Cayman Islands-based auditor, on June 30, 2021.

Ex-NFL Owner With Tether Ties Faces Trial in February 2022

Of that total backing, $30.8 billion comes from commercial paper and certificates of deposit.

Critically, just 10% of Tether’s backing comes from cash and bank deposits.

Tether’s reserves in May

The report has been published following Tether’s breakdown of its reserves in May of this year.

That report suggested that as of March 31, 2021, 76% of Tethers reserves were held in cash or cash equivalents. It also showed specifically that under 3% of all Tethers were backed by cash, despite previous claims that Tethers were 100% backed by cash. The remaining quarter that was not held in cash or cash equivalents was held in secured loans, bonds, and other investments that include BTC.

Today, Tether’s chief technology officer, Paolo Ardoino, said Tether understands “the importance of transparency and accountability.” The company has previously faced criticism on this front, given the fact the report published in May was the first time the company’s reserves were made available to the public for seven years.


All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

Leave a Reply