Tether Reserves Report: USDT Maintains Dominance With $86.1 Billion Total Assets, Over 100% Reserve-Backed

Stablecoin Tether USDT
Last updated:
Author
Author
David Pokima
About Author

David is a finance journalist and a contributor to Cryptonews.com with a keen interest in breaking comprehensive, accurate, and reliable blockchain news.

Last updated:
Why Trust Cryptonews
With over a decade of crypto coverage, Cryptonews delivers authoritative insights you can rely on. Our veteran team of journalists and analysts combines in-depth market knowledge with hands-on testing of blockchain technologies. We maintain strict editorial standards, ensuring factual accuracy and impartial reporting on both established cryptocurrencies and emerging projects. Our longstanding presence in the industry and commitment to quality journalism make Cryptonews a trusted source in the dynamic world of digital assets. Read more about Cryptonews
Source: Adobe / Alvaro

Stablecoin issuer Tether posts its total assets at $86.1 billion as it maintains its leading market share despite growing competition and uncertain regulatory conditions.

In the company’s reserve report, while total assets stood at $86.1 billion, its liabilities amounted to $82.8 billion. Liabilities include user assets held in USDT across multiple networks.

This report shows the company’s stability as its reserves are over 100%. In total, the company posted a liquidity cushion of $3.2 billion signifying a surplus to the delight of the community.

The issuer’s $3.29 billion surplus is shareholder capital which is held on multiple networks, over 15 as explained in the statement. 

Across the networks, Solana has a value pre-authorization of $1.57 billion with Ethereum and Tron coming next with $617 million and $353 million.

In recent years, Tether has come under regulatory scrutiny for allegedly sharing untrue financial statements resulting in a $41 million fine by the Commodity Futures Trading Commission (CFTC) in Oct 2021.

Those events led to users’ fear which heightened with the collapse of the Terra Network following the failure of its algorithm-backed stablecoin in April 2022. 

On the bright side, Tether’s previous transparency reports have not been questioned by regulators leading to its growing popularity among investors even in the wake of new competition.

Per the report, USDT is the only stablecoin under Tether that boasts of excess reserves above its liabilities. The other assets, CNHT, XAUT, MNXT, and EURT cannot keep up the 1:1 peg with its balance in the event of a crisis.

USDT leads the pack

USDT has led the stablecoin market for a long time keeping its competition in the shadows amid regulatory concerns.

In the company’s Q2 report, it reported a profit of $850, a 30% quarter-on-quarter increase bringing its reserves over $3.2 billion.

In June, the company hit an all-time high as its market cap soared above $83 billion with competitors struggling to stay above the water. USD Circle stands in second place in terms of market cap with $28.8 billion, a staggering $50 billion behind USDT. 

The dominance of USDT can be noted in the recent slump of USDC which recorded a market cap of 55.8 billion in June 2022. The stablecoin has faced recent headwinds including losing its peg earlier in the year after the Silvergate Bank saga.

Binance USD, (BUSD) currently has a market cap of $5 billion with its CEO Changpeng Zhao highlighting the regulatory cap of BUSD by the New York Department of Financial Services at $23 billion as a key reason for the surge of USDT. 

More Articles

Blockchain News
Japanese E-commerce Giant Mercari’s Crypto Exchange Revenues ‘Up x9’ on 2023
Tim Alper
Tim Alper
2024-11-06 23:30:00
Industry Talk
Pepe Coin Gets Robinhood Support – Will PEPE Soar Like Dogecoin? 
Joel Frank
Joel Frank
2024-11-06 22:15:01
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors