Report: Nearly 50% of USDT backing by Tether consists of commercial paper

As of July 30, 2021, the stablecoin USDT was 100% backed by reserves of Tether Holdings Limited, Moore Cayman confirmed in a new report.

Tether has always been fully backed and the assurance opinion made available today confirms it once again, and puts Tether ahead of the industry on transparency.https://t.co/2CLZTLXNjb

— Tether (@Tether_to) August 9, 2021

The value of the firm’s assets exceeded $62.7 billion, with a circulating supply of 62.6 billion coins at the time of the audit.

Moreover, 49% of the reserves consisted of corporate debt securities worth $30.8 billion. The average maturity of corporate debt obligations is 150 days.

The share of cash and bank deposits that can be withdrawn within two days or less accounted for 10% of the backing — approximately $6.28 billion.

A substantial portion of the reserves consisted of U.S. Treasury notes with maturities of less than 90 days. They accounted for more than 22.5% of the total value, or about $15.3 billion.

In March 2021, Moore Cayman for the first time provided a conclusion of full backing of the stablecoin by the issuer’s reserves.

VanEck digital assets strategist Gabor Gurbacs отметил, что в последнем аудиторском отчете впервые дана подробная разбивка по активам, их качеству, срокам погашения/обращения.

«Tether продолжает прилагать усилия по обеспечению большей прозрачности ведущего стейблкоина с капитализацией в $62 млрд», — подчеркнул он.

In May 2019, Tether Limited’s chief legal officer Stuart Hogner admitted that USDT was backed by reserves at 74%.

The first third party, confirming full backing of the stablecoin, was the Bahamas-based Deltec bank in January 2021. The company held its assets at the institution.

Follow ForkLog news on Facebook.