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.
Tether at present releases its attestation for Q3 /2023.- cash & cash equal portion of reserves is all time excessive at 85.7%, yielding ~$1B
– US T-bill (direct and oblique) publicity at $72.6B
– diminished secured loans by $330M
– investments in power, bitcoin mining and P2P tech… https://t.co/PXQ1H5gqUX pic.twitter.com/ibKJRPlBAg— Paolo Ardoino (@paoloardoino) October 31, 2023
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.
Related: Brazil’s USDT adoption soars in 2023, makes up 80% of all crypto transactions
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.
