Independent Tether attestation reveals 58% decrease in commercial paper holdings

An independent review from the accounting firm BDO reported that the stablecoin issuer’s total assets exceed its consolidated liabilities.

An announcement from USDT issuer Tether Holdings Limited revealed information from an independent attestation against the company’s previous quarter’s performance. The reviewer, top accounting firm BDO Italia, assessed Tether’s assets as of June 30, 2022. 

Tether previously announced a commitment to decreasing its commercial paper holdings by the end of August 2022. Data from the report revealed a 58% decrease in commercial paper exposure since the previous quarter from $20 billion to $8.5 billion.

The CTO of Tether, Paolo Ardoino, tweeted that Tether has plans to continue to decrease its commercial paper holdings to $200 million by the end of August and zero them out by the following October.

As of June 30th, more than 58% decrease in Tether’s commercial paper holdings over the prior quarter from $20B to $8.5B.
CP portfolio will be $200m by end of August and 0 by end of October. https://t.co/g5lJgs1r3n

— Paolo Ardoino (@paoloardoino) August 19, 2022

Additionally, the total amount of consolidated assets held by Tether at the time of the review amounted to just over $66.4 billion. Meanwhile, the total amount of consolidated liabilities equaled out to nearly $66.2 billion, with nearly 99% related to digital tokens.

In May 2021 Tether began releasing quarterly statements of its stablecoin reserves after reaching a settlement with the New York Attorney General. This came after a lawsuit against Tether claimed that USDT didn’t have full backing in its reserve at all times.

The company says these reports, specifically with the oversight of BDO, are to “reinforce its dedication to transparency.” Ardoino commented on the attestation, saying:

“The utility of Tether continues to be supported by the transparency of its reseres and has been a leading source of stability allowing us to build a tool for the global economy.”

Tether’s attestation report was released one week after the United States government sanctioned cryptocurrency mixer Tornado Cash, which contributed to a surge in USDT’s circulating supply. USDT continues to hold the top spot as the world’s largest stablecoin by market capitalization, according to data from CoinMarketCap.

Related: Tether calls thesis behind USDT short-selling ‘flat out wrong’

Tether recently came out with a statement in alignment with the upcoming Ethereum Merge to Proof-of-Stake, which is projected to happen this September.