After TerraUSD (UST) De-Pegging Scare, Tether (USDT) Releases Report Claiming It Has Fully Backed Reserves
As the most recent crypto market crash is putting the spotlight on stablecoins, one of the leading dollar-pegged tokens says its valuation remains secure.
In a new post, Tether Holdings Limited announced that not only is its signature product Tether (USDT) backed by more assets than liabilities, the company is reducing its commercial investments in favor of treasury bills backed by the US government.
According to the report, the MHA Cayman accounting firm conducted an independent audit of Tether’s holdings as of March 31st of this year. Findings include a reduction in commercial paper holdings by 16.9% compared to the previous quarter, down from $24.2 billion to $20.1 billion.
At the same time, Tether claims to have increased its allocation into money market funds and treasury bills by 13.6%, rising from $34.5 billion to $39.2 billion.
Other data points include,
“Consolidated total assets amount to at least $82,424,821,101.
The consolidated group’s consolidated assets exceed its consolidated liabilities.
The consolidated group’s reserves held for the digital tokens issued exceeds the amount required to redeem the digital tokens issued.”
Tether’s chief financial officer Paolo Ardoino notes that Tether has reduced its commercial paper exposure by an additional 20% since April 1st.
While addressing recent challenges affecting the crypto space, including the crisis sparked by Luna Foundation Guard’s TerraUSD (UST) de-pegging from the US dollar, Ardoino says,
“Tether has maintained its stability through multiple black swan events and highly volatile market conditions and… has never once failed to honor a redemption request from any of its verified customers.
This latest attestation further highlights that Tether is fully backed and that the composition of its reserves is strong, conservative, and liquid.”
Like most stablecoins, Tether historically zigzags up and down within tiny fractions of a penny of its dollar peg. However, the UST collapse caused USDT to rise as high as $1.01 on May 11th and then fall to $0.99 a day later. The altcoin has since stabilized and is currently valued at $0.999398.
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The post After TerraUSD (UST) De-Pegging Scare, Tether (USDT) Releases Report Claiming It Has Fully Backed Reserves appeared first on The Daily Hodl.
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Author: Daily Hodl Staff
