Tether Finally Reveals Its Breakdown of USDT Reserve Backing

May 14, 2021, 10:15 AM AEST - 8 months ago

Tether Inc., the company behind the largest USD-backed stablecoin (USDT), has published a breakdown of asset categories that make up the stablecoin reserve. This is actually the first time the company reveals its reserve assets since the inception in 2014. 

Only 3.87% of USDT Reserve is Held in Cash

In the publication, Tether broke down its reserve assets into four categories. The majority of USDT reserves (75.85 percent) are held under the “Cash & Cash Equivalents & Other Short-Term Deposits  &  Commercial Paper” category. Further breakdown of this particular category shows that the company holds less cash reserve for the stablecoin. 

The allocation in this category is as follows:

  • Commercial Paper (65.39%) 
  • Fiduciary Deposits (24.20%) 
  • Cash (3.87%) 
  • Reverse Repo Notes (3.60%) 
  • Treasury Bills (2.94%)

The remaining 24 percent are held in Secured  Loans (12.55%), Corporate Bonds, Funds & Precious Metals (9.96%), and 1.64 percent in other investments that include cryptocurrencies.

Tether Commits to Ensuring Transparency of USDT

Having suffered several criticisms of market manipulation and shady reserve, Tether has since committed to ensuring transparency of its stablecoin. 

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.

Tether wrote. 

In March, Tether also released a transparency report which claimed that all USDT in circulation is fully backed by the reserve, as audited by Moore Cayman.

According to CoinMarketCap, there are currently 57,755,893,177 USDT in circulation, meaning that Tether holds over $57 billion USD in reserve for the coins.

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