On November 10, Tether Holdings Limited, the stablecoin issuer, released its most recent quarterly audit report, underlining the “extremely liquid” quality of its holdings at a time when the cryptocurrency markets have been in distress over the news of FTX’s alleged collapse.
As of September 30, 2022, 82% of Tether’s reserves were held in cash, cash equivalents, and other short-term assets, the organization said. The percentage of Tether’s holdings that are exposed to commercial paper, a form of short-term corporate debt with a greater risk profile, has decreased to just 0.07%.
The corporation asserts that winding down its $24 billion worth of commercial paper holdings has not resulted in any losses. Over 58% of the stablecoin issuer’s reserves are presently held in US Treasury Bills.
In the third quarter, Tether reported a profit and increased its surplus reserves by $60 million. The most recent attestation, according to Paolo Ardoino, chief technical officer of Tether, shows the company’s strong financial situation and dedication to openness.
The quarterly attestation was carried out by BDO Italia, a division of the accounting firm BDO Global, which Tether hired in August to meet its reporting standards. Since then, Tether has released monthly attestations demonstrating the complete backing of its USDT stablecoin.
With $68.5 billion worth of USDT in circulation at the time of publication, Tether is still the single-largest stablecoin by market value despite an infusion of rivals over the years.