Tether released its report on the reserves it uses to generate USDT on Thursday. Tether announced that 3.87% of the reserves are held in the form of cash.
Tether, the producer of USDT, the largest stablecoin with a market value of $ 58.2 billion, announced how its reserves were as of March 31, 2021. The company last released such a detailed report in 2014.
Reserve divided into 4 different categories
According to the numbers announced today, 75.85% of the USDT reserves are cash and cash equivalents, short-term deposits and commercial papers. The weight distribution of this category,
- 65.39% commercial paper,
- 24.20% fiduciary account
- 3.87% cash,
- 3.60% reverse repo transactions,
- 2.94% was in the form of treasury bills.
The remaining 12.55% of the reserve consists of secured debt instruments, 9.96% of corporate bonds and funds and precious metals, and 1.64% of other investments, including digital tokens.
“Those who read (the Report) should not confuse assets that are not ‘cash’ with a lack of liquidity,” Tether General Counsel Stuart Hoegner said about the amount of cash occupying a small footprint in the company’s reserves. said.
Began to follow a more transparent policy
Bitfinex and Tether reached a compromise with the New York Attorney General’s Office, paying $ 18.5 million in damages earlier this year.
The company has announced that it will start to follow a more transparent policy after the case is closed. Hoegner said the report released today is an indication of their “determination” towards this policy.