Stablecoins: Tether Reveals The Composition Of Its Reserves On Its Way To “Transparency”

USDT’s consolidated assets exceed its consolidated liabilities, according to the parent firm that owns the stablecoin, Tether Holdings Limited.

Tether (USDT) revealed the composition of its funds for the first time since its launch in 2014 and surprises the cryptocurrency ecosystem, in a strategy of the firm that owns the stablecoin for contributing to the “transparency” in the market.

The revelation, dated March 31 of this year and shown by The Block site, found that Tether Limited Holdings, the parent company of the token, owns approximately 76% of your cash reserves, equivalent assets and other short-term deposits such as promissory notes.

The latter constitute the majority of the category of cash equivalent assets, representing 65% total. On the other hand, fiduciary deposits represented 24% of the category, reverse committed notes 3.60%, treasury notes around 3% and real money only 3.87%.

When asked why the fiat money constituted only a small part of the total reserves, the asesor general de Tether, Stuart Hoegner, assured The Block that it is “misleading focus exclusively on money“within the category of money and its equivalents.”Readers should not confuse non-‘real money’ items with lack of liquidity ‘“.

Consulted regarding the promissory notes, Hoegner It denied sharing the names of the counterparties “in accordance with standard business practice.” The other 25% of the company’s reserves are divided into three categories:

  1. Securities loans, none of which to affiliated entities, which make up 12.55% of total reserves (issued by Tether herself)
  2. Corporate bonds, funds and precious metals, which make up almost 10%
  3. Other investments, including digital tokens, which together are 1.64%

Regarding the category of securities, funds and precious metals, he declined to share more details, and regarding the digital tokens, Hoegner claimed that the indication refers to exclusively to Bitcoin.

We have seen that Bitcoin has become a major component of the balance sheets of several major corporations in the public and private markets of the United States. This serves to diversify risk“, he asserted.

And I add: “Tether’s use of BTC and other forms of investment is in line with this practice.”

Tether Holdings bleaches the composition of its reserves

Tether’s path to transparency

When it was created, each Tether (USDT) was originally declared to be backed 1 to 1 with US dollars, setting its status as “stablecoin“or stable currency.

In March 2019, it updated its website to state that “all Tether tokens are 100% backed by Tether reserves“Subsequently, he created a transparency page that describes the assets and liabilities of the company, measured in three different currencies and gold.

However, despite such efforts, The New York attorney general’s office accused them in 2019 of covering up operations and having no backing in the stablecoin.

Now, Tether proposed the dissemination of its reservations as part of a conciliation agreement with the New York Attorney General’s Office, and from Tether they agree to make this information available to both the Attorney General’s Office and the public, according to Hoegner.

Today’s post reflects our continued dedication to transparency and standard setting in our industry.“, he added. Coingolive, the reserves of Tether Dollar today they add up u $ s58,190 million, an increase of 0.72% in the last 24 hours due to the recent Bitcoin crash.

The adjusted volume of the network Tether passed the $ 1 trillion mark annually for the first time.

Tether (USDT) is the main stablecoin on the market

Tether (USDT) is the main stablecoin on the market

Tether grows and remains the main stablecoin

Tether set a record since his capitalization market share exceeded $ 50 billion for the first time, which translates into a streak of growth of the stablecoins throughout the bull market.

A market capitalization of these amounts suggests that there are more than u $ s50,000 million USDT outstanding. Until Thursday, May 13, Tether’s market capitalization was approximately $ 58.4 billion, in places like Coingecko.

USDT is still the main stablecoin for cryptocurrency traders, which configures approximately a 65% of total market capitalization. USDC, the second largest stablecoin by capitalization, represents only 14%.

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Stablecoins: Tether Reveals The Composition Of Its Reserves On Its Way To “Transparency”

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