- Tether’s cash reserves have hit an all-time high, constituting 85.7% of USDT’s total $84.7 billion backing
- The reserves consist primarily of $72.6 billion in US Treasury Bills, with over $4 billion in reserve
- However, Tether’s claims will remain under scrutiny until it undergoes an external audit
Tether yesterday revealed that its cash reserves are at an all-time high, making up 85.7% of USDT’s total $84.7 billion backing. In its Consolidated Reserves Report (CRR), Tether claimed in its latest attestation that this backing was made up of cash and cash equivalents, primarily consisting of US Treasury Bills, amounting to $72.6 billion. Tether said that the figure “signifies a commitment to maintaining liquidity and ensuring stability within the stablecoin ecosystem,” but until the company is audited by an external auditor, these figures will not assuage the doubts that continue to dog it from critics.
From 3.87% to 87.5% Cash Backing
Tether was ordered to provide regular attestations as part of its settlement with the Office of the New York Attorney General in 2021 which it has been doing through accountancy firm BDO Italia. The company’s first attestation revealed that USDT was backed by less than 4% cash which horrified many in the crypto space and prompted the company to pledge a massive increase in its cash reserves.
Tether seems to be sticking to this promise, with its cash backing at record highs and excess reserves hitting $4.2 billion, only $0.9 billion of which is in the form of secured loans. There is, however, a huge difference between attestations and audits: Tether produces monthly attestations of its backing based on its own figures, whereas an audit involves a third party investigating the company’s reserves. Tether has never received a full audit, something that its critics continue to use against the company.
Tether Continues to Expand
Paolo Ardoino, CEO of Tether, said in the report that the increase of cash holdings represented “a testament to our unwavering commitment to transparency, stability, and responsible financial management,” adding that the landmark signaled Tether’s “dedication to maintaining liquidity and stability within the stablecoin ecosystem.”
Tether has branched out in recent months, investing in Bitcoin mining operations in Uruguay among other avenues for financial growth.
