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.
$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.
A 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.
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