Tether’s latest accounting review claims USDT tokens are fully backed
Tether’s latest transparency report shows it holds most of its reserves in cash and cash equivalents
Tether Holdings, the firm behind the USDT stablecoin, published its independent accountant report yesterday. The independent report claims that the USDT tokens issued by the company are fully backed by its reserves.
The report is for the period that ended on 30 June 2021. Per the report, the company held roughly $62,773,190,075 in assets, with most of the funds in cash and cash equivalents. In addition to that, Tether’s liabilities during that period were $62,628,932,116, of which $62,610,829,196 were related to its stablecoin.
The review was conducted by Moore Cayman, the Cayman Islands-based accounting firm that handled its last transparency report in April. The Consolidated Reserves Report or CRR indicates that Tether met its reserve obligations for the period that ended in June.
Tether’s latest report claims that the company has added more than $21 billion to its total assets over the past few months. The April report indicated that Tether held $41,017,565,708 in total assets while it now holds $62,773,190,075.
Moore Cayman wrote that “In our opinion, the CRR as prepared by the management of Tether Holdings Limited group as of 30 June 2021 at 11:59 PM UTC, is presented in accordance with the criteria set out therein and is, in all material respects, fairly stated.”
According to the report, 85% of Tether’s (USDT’s) reserves are held in cash and cash equivalents. This means that of the $62.8 billion reserve, $53.4 billion are cash and cash equivalents. This includes $30.8 billion in commercial paper and certificates of deposit, $15.3 billion in treasury bills, $6.3 billion in cash and bank deposits and $1 billion in reverse repo notes.
Tether holds 8% of its total assets in corporate bonds, funds and precious metals, 4% in secured loans, and 3% in other investments like digital tokens. The company is publishing the transparency report as part of a settlement with the New York Attorney General’s office in February earlier this year.