Tether attestation shows cash and cash equivalents of 86% as loans decline


The reserves for stablecoin issuer Tether contained roughly 86% cash and cash equivalents as of September 30, in response to a brand new attestation report from accounting agency BDO. This is the best share of cash and cash equivalents which have ever made up Tether’s reserves.

According to the report, $56.6 billion value of reserves are in U.S. Treasury payments with a maturity date of lower than 90 days. Meanwhile, one other $8.8 billion was held in reverse repurchase agreements involving these payments. There was $8.2 billion in U.S. Money Market funds pegged to $1 per observe and $292 million in cash and financial institution deposits. Another $65 million is held within the kind of treasury payments from international locations aside from the U.S.. The whole quantity of cash and cash equivalents is roughly $74 billion, which is 85.73% of Tether’s whole reserves of $86.4 billion.

The report additionally shows that Tether has diminished its reliance on secured loans as a way of elevating income. Secured loans now make up solely $5.1 billion value of USDT reserves, which is roughly $336 million lower than what the earlier report confirmed. Tether was criticized in September for continuing to make secured loans after beforehand stating that it might wind these down.

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In an accompanying weblog put up, Tether forecast an additional discount in loans by the shut of day on October 31. An further $1.1 billion in loans might be wound down by this date, at which level solely $900 million in loans will stay as half of reserves.

BDO publishes attestations of Tether’s reserves each quarter, with a one-month lag between the tip of the quarter and the publication of the report. Tether claims that it is working on a system to provide real-time audit reports in 2024.