After much controversy over its actual cash holdings, Tether has finally revealed its actual cash reserves and cash equivalents for the first time since 2014.
The breakdown of its reserves reveals that nearly 76% are in cash while the rest is held in other forms including bitcoin.
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Below is a breakdown of the Tether reserves:
- Cash & cash equivalents & short-term deposits & commercial paper (75.85%)
- Secured loans (non to affiliated entities) (12.55%)
- Corporate bonds, funds & precious metals (9.96%)
- Other investments (including digital tokens, specifically bitcoin) (1.64%)
Here is a breakdown of the cash and cash equivalents that make up the 75.85% reserves:
- Commercial Paper (65.39%)
- Fiduciary deposits (24.20%)
- Cash (3.87%)
- Reserve Repo Notes (3.60%)
- Treasury Bills (2.94%)
Tether originally claimed that each Tether (USDT) is backed 1:1 with US dollars, until March 2019 when it revealed that that ‘all Tether tokens are backed 100% by Tether’s reserves.’
This revelation also comes following an $18.5 million fine by the New York Attorney General’s office and a commitment to make this information available to the public in early 2021 as part of its ‘ongoing dedication to transparency and setting the standard in the industry.’
USDT is the larget stablecoin by market capitalization which currently stands at nearly $58.5 billion at the time of this writing.
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