Tether Releases Its Most Detailed Reserve Report Yet – Only 10% in Cash Deposits

Tether is one of the more popular stable coins

In March 2021, Tether provided a breakdown of the assets under reserve but without the word of an independent accounting firm.

This time round, the firm has produced a second attestation report, the first coming in May 2021 after an agreement with the New York Attorney General (NYAG) to disclose its reserves and liabilities.

In the attestation, Tether had $62.8 billion in total assets as of June 30 2021, up from $41 billion on March 31, when its last attestation report was dated.


SEE ALSO: Only 76% of USDT Reserves in Cash, Reveals Stablecoin Issuer, Tether


$30.8 billion, or 49% of Tether’s reserves, was held in CP (Commercial Paper) and CDs (Certificates of Deposit).

A Commercial paper, in the global financial market, is an unsecured promissory note with a fixed maturity of rarely more than 270 days.

certificate of deposit (CD) is a time deposit, a financial product commonly sold by banks, thrift institutions, and credit unions.

The attestation has determined that 93% of Tethers CPs and CDs was rated A-2 and above and 1.5% below A-3, despite Tether executives recently indicating that its commercial paper was ‘overwhelmingly rated A2 or better.’

According to Tether, these ratings refer to short-term credit ratings by Standard & Poor’s, when available, otherwise, ‘publicly available industry standard conversion tables have been used to convert ratings from Moody’s or Fitch to the S&P equivalent,’ according to the report.

The rest of the reserves are as follows:

  • $6.28 billion cash and bank deposits, or 10% of the total
  • $1 billion in reverse repo notes (1.6%)
  • $15.28 billion of U.S. Treasury bills (24.3%)
  • $2.52 billion secured loans and $4.83 billion corporate bonds (4%)
  • Funds and precious metals (7.7%)
  • $2.05 billion in other investments, including digital tokens (3.3%)

Tether has a circulating supply of $62.7 billion, according to the latest CoinGecko


RECOMMENDED READING: USDC in Circulation Grows By Over 2,600% in 2021, Reveals the Latest Circle Report


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