Tether Finally Reveals Its Breakdown of USDT Reserve Backing

Tether Finally Reveals Its Breakdown of USDT Reserve Backing thumbnail

Tether Inc., the firm behind the biggest USD-backed stablecoin (USDT), has released a breakdown of asset categories which constitute the stablecoin reserve. This is truly that the first time the company reveals its reserve assets since the beginning in 2014. 

Just 3.87% of USDT Reserve is Held in Money

From the novel, Tether broke down its reserve assets into four classes. The vast majority of USDT reservations (75.85 percent) are held under the “Cash & Cash Equivalents & Other Short-Term Deposits  &  Commercial Paper” category. Further breakdown of this specific category proves that the company retains less cash book for the stablecoin. 

The allocation in this class is as follows:

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  • Commercial Paper (65.39%) 
  • Fiduciary Deposits (24.20%) 
  • Cash (3.87%) 
  • Reverse Repo Notes (3.60%) 
  • Treasury Bills (2.94%)

The remaining 24 percent are held at Secured  Loans (12.55%), Corporate Bonds, Funds & Precious Metals (9.96%), and 1.64 percent in additional investments which include cryptocurrencies.

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Tether Commits to strengthening Transparency of USDT

Having endured several criticisms of market manipulation and unethical book, Tether has since committed to ensuring transparency of its stablecoin. 

Today’s publication reflects our continuing dedication to making this information public as part of our continuing commitment to transparency and setting the standard in our industry. We espouse that commitment to our community.

Tether wrote. 

In March, Tether also released a transparency report which claimed that USDT in flow is fully backed by the book, as audited by Moore Cayman.

Based on CoinMarketCap, there are now 57,755,893,177 USDT in flow, meaning that Tether retains over $57 billion USD in book for those coins.

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