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Saturday, October 23, 2021

Stablecoin issuer Tether releases breakdown of its reserves

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The stablecoin issuer Tether released a report consisting of a breakdown of its reserves as of 31st of March 2021. This is the first of its kind since Tether’s launch in July 2014.

The pie chart below shows that the company held approximately 76% of its reserves in cash and cash equivalents and other short-term deposits and commercial paper.


With a share of 65.39%, commercial paper formed the major chunk of the stablecoin giant’s cash and cash equivalents cohort. Fiduciary deposits, on the other hand, accounted for 24.20% of the same category, while cash, reverse repo notes, treasury bills comprised 3.87%, 3.60%, and2.94% respectively.

The remainder of the platform’s reserves were split up across three groups. For instance, secured loans [none to affiliated entities] formed 12.55% of the total reserves while corporate bonds, funds, and precious metals collectively represented 10%. Moreover, other investments, including digital tokens, constituted 1.64%.

Reason Behind Tether’s First-ever Reserve Composition Release

The latest report essentially underscores the company’s efforts to remain in compliance with a settlement with the New York Attorney General [NYAG] whose probe ended in March. Tether and its sister company/cryptocurrency exchange Bitfinex had to pay an $18.5 million fine in addition to agreeing on the release of quarterly breakdowns of its reserves. In line with this, Tether stated,

“Today’s publication reflects our continued dedication to making this information public as part of our ongoing commitment to transparency and setting the standard in our industry. We embrace that commitment to our community.”

Earlier this month, its stablecoin [USDT] on-chain’s volume had climbed to a new milestone of a whopping $1 trillion for the first time ever. Despite several controversies and the emergence of several stablecoins over the past few years, Tether continued to dominate the realm. At the time of writing controls well over 60% of the market share of the total stablecoin transaction volume.

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