- Tether’s Q3 attestation shows the highest ever percentage (85.7%) of its reserves in cash and cash equivalents, indicating a commitment to liquidity and stability.
- The attestation highlights a significant $330+ million reduction in secured loans by Tether, further demonstrating financial prudence and accountability.
- Despite market volatility, Tether maintained stable excess reserves and returns close to $1 billion on investments, underscoring its financial strength and resilience.
Tether Holdings Limited recently published its assurance opinion for Q3 of 2023, completed by the accounting firm BDO. The attestation reaffirms the accuracy of Tether’s Consolidated Reserves Report (CRR) and provides details on the assets held by Tether as of September 30, 2023.
Highest Percentage of Cash & Cash Equivalents
The CRR shows that Tether is holding the highest percentage ever of its reserves in Cash and Cash Equivalents (CCeq) – an impressive 85.7%. The majority of this is in US T-Bills, accounting for $72.6 billion in both direct and indirect exposure. This commitment to liquidity and stability is a positive sign for the stablecoin ecosystem.
Reduction in Secured Loans
Additionally, the CRR highlights a substantial $330+ million reduction in secured loans extended by Tether. This financial prudence further bolsters confidence in Tether’s dedication to transparency and accountability.
Quarterly Investment Returns
By leveraging robust risk management strategies, Tether’s quarterly returns from CCeq investments are again close to $1 billion. This showcases Tether’s financial strength despite market volatility.
Investments in Sustainable Initiatives
Tether disclosed over $800 million in investments this year in sustainable energy, Bitcoin mining, data, and P2P technology. These investments are not considered part of Tether’s reserves.
Stable Excess Reserves Despite Volatility
Despite Bitcoin and gold price fluctuations this quarter, Tether maintained stable excess reserves. This resilience underscores Tether’s commitment to a dependable stablecoin ecosystem.
Assets Continue to Exceed Liabilities
The CRR and independent attestation confirm that Tether’s consolidated assets exceed its consolidated liabilities.
Commitment to Reducing Secured Loans
Tether aims to reduce and eventually remove secured loans from its reserves by leveraging excess reserves and profits. Charts in the CRR show the substantial progress made, with secured loans now comprising only a small fraction of Tether’s ample USD reserves.
Tether’s Commitment to Transparency
Tether’s Q3 attestation demonstrates its commitment to transparency, stability, and responsible financial management. Reducing secured loans and weathering volatility proves the strength of its risk strategies. Investments in sustainability exemplify Tether’s commitment to an inclusive financial future.
