Stablecoin issuer Tether’s latest attestation report from accounting firm BDO reveals that approximately 86% of its reserves consisted of cash and cash equivalents as of September 30. This marks the highest percentage of cash and cash equivalents in Tether’s reserves to date. The report also indicates that $56.6 billion worth of reserves are in U.S. Treasury bills with a maturity date of less than 90 days. Additionally, $8.8 billion was held in reverse repurchase agreements involving these bills, $8.2 billion in U.S. Money Market funds, $292 million in cash and bank deposits, and $65 million in treasury bills from non-U.S. countries. In total, the cash and cash equivalents amount to approximately $74 billion, representing 85.73% of Tether’s total reserves of $86.4 billion.
The report also highlights that Tether has reduced its reliance on secured loans as a means of generating revenue. The current report shows that secured loans now account for $5.1 billion in USDT reserves, which is approximately $336 million less than what the previous report indicated. Tether faced criticism in September for continuing to offer secured loans despite previously stating that it would wind them down.
In a blog post accompanying the attestation report, Tether forecasts a further reduction in loans by the end of October 31. It plans to wind down an additional $1.1 billion in loans, leaving only $900 million in loans as part of its reserves.
BDO releases attestations of Tether’s reserves every quarter, with a one-month lag between the end of the quarter and the report’s publication. Tether has announced that it is working on implementing a system to provide real-time audit reports starting in 2024.
The latest attestation report sheds light on Tether’s robust reserve composition and its efforts to reduce its reliance on secured loans. With a majority of its reserves in cash and cash equivalents, Tether aims to enhance transparency and strengthen trust among its users and the wider market. The reduction in secured loans aligns with Tether’s commitment to addressing concerns raised and ensuring the stability of its stablecoin. By providing regular attestation reports and working towards real-time audit reports, Tether aims to further build confidence in its operations and maintain its position in the cryptocurrency market.
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