This Friday, Tether, issuer of the largest stablecoin in market value (USDT), released a new report financial statement detailing the reserves that serve as backing for the stable cryptocurrency.
However, the document does not bring much news compared to the last report released.
According to a September 30 survey conducted by the Moore Cayman accounting firm, Tether Holdings Ltd. had assets totaling just over $69 billion. This equates to the approximate market value of stablecoin on that date.
“The group’s reserves held for its issued digital assets exceed the amount needed to redeem the issued digital asset tokens,” highlights the report.
10% of reservations are in cash
Of the total of nearly US$70 billion, US$30.6 billion is in commercial papers and certificates of deposit.
In addition, $7.2 billion of the reserves are in cash, equivalent to just over 10% of the total. Nearly $1 billion of the backing is in money market funds and $19 billion in Treasury bonds.
The report also listed $3.5 billion in guaranteed loans to unaffiliated entities and $3.6 billion in corporate bonds, funds and precious metals. Finally, $3.8 billion is in other investments that include tokens.
On Twitter, when releasing the report, the USDT broadcaster stated:
“Tether has always been fully supported and the latest quarterly warranty opinion released today reaffirms that.”
The document also showed that Tether transferred about $1 billion in repo notes to money market funds. However, they do not specify in which countries the funds are based.
Controversy involving Tether
It is not new that the issuer of largest stablecoin on the market is involved in controversies about its backing.
The growth of the stablecoin market has drawn the attention of regulators around the world. Economic officials, particularly from the United States, believe that this asset class poses a risk to financial stability.
In February, industry companies, including Tether, agreed to provide quarterly reports on their reserves. In March, the USDT issuer released your first survey.
Although the company emphasizes that the report delivers transparency, there were no accurate descriptions of how USDT reserves were maintained.
In May, the network released a new report that caused even more controversy. This is because, according to the document, 3.87% of the reserves were kept in cash.