Tether Reveals Its Reserves Breakdown For The First Time

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Linas Kmieliauskas

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Linas Kmieliauskas

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June 26, 2023

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Tether, the issuer of the most popular stablecoin, tether (USDT), presented its reserves breakdown for the first time.

Per the company, almost 76% of its reserves on March 31 consisted of cash, cash, cash equivalents, and other short-term deposits & commercial paper. Cash’s share in this category is less than 4%.

Reserves Breakdown, March 31

• Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper (75.85%)
  – Commercial Paper (65.39%)
  – Fiduciary Deposits (24.20%)
  – Cash (3.87%)
  – Reverse Repo Notes (3.60%)
  – Treasury Bills (2.94%)
• Secured Loans (none to affiliated entities) (12.55%)
• Corporate Bonds, Funds & Precious Metals (9.96%)
• Other Investments (including digital tokens) (1.64%)
  Source: Tether

As reported in April, per an independent accountant, Moore Cayman, Tether’s consolidated total assets “amounted to at least USD 41,017,565,708” on March 31, while its liabilities were lower, of which “USD 40,855,204,950 relates to digital tokens issued.”

The market capitalization of USDT reached almost USD 58.5bn today.

Tether was obliged by the New York Attorney General’s Office (AOG) to disclose how tethers are backed in more detail. Per the office, Tether must offer public disclosures, by category, of the assets backing tethers, including disclosure of any loans or receivables to or from affiliated entities.

Meanwhile, as reported today, it appears that regulatory strife may well be in store for stablecoins, with experts opining that fiat-pegged tokens could fall under the scrutiny of financial policymakers.
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Learn more:
– Imagine Regulators Shutting Tether Down – What Happens to Bitcoin?
– King of Stablecoins, Tether, Faces Regulatory Uncertainties – Report

– Ethereum’s Buterin Says Tether Is Bitcoin’s ‘Ticking Time Bomb Demon’
– Bitfinex Repays USD 550m to Tether