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Tether USDT reviews a detailed report on its stablecoin reserves

Tether USDT reviews a detailed report on its stablecoin reserves

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Answer Tether USDT reviews a detailed report on its stablecoin reserves

The collapse of Terra and UST, which happened a little over a week ago, has caused a real panic in the crypto-stable sector.

Some of them, like USDC and BUSD, were satisfied, they are trading at a premium compared to the market and their correlation continues and works normally.

While other stable cryptocurrencies such as USDN, DEI and USDT have found themselves under serious pressure due to user mistrust of them.

Tether’s USDT, as one of the most popular stablecoins, appears to want to quietly escape this market turmoil and be a safe haven for investor funds.

However, many users are still completely suspicious of USDT, due to the dispute with the SEC, and the exaggerated reserve count behind it.

Read:Sotheby’s Expands the Crypto Market and Invests $20 Million in an NFT Company

The situation was also exacerbated by the high proportion of commercial paper in the reserve that Tether Holdings published in December 2021.

The problem with commercial paper is that it is much less liquid, and in the event of a financial crisis, it will not be easy to get rid of it and liquidate it quickly.

Tether was regularly warned by senior analysts, and Tether’s chief executive agreed, stating that they are reducing their holdings of those securities and increasing exposure to US Treasuries.

Tether reassures its users and closes the doors to its critics:

Finally, on May 19, issued Tether Inc released its consolidated report for its reserves, which reflects a 17% quarter-on-quarter decline in commercial paper from $24.2 billion to $19.9 billion.

The certification was carried out by independent accountants affiliated with “MHA Cayman”, and the certification represents the company’s assets on March 31, 2022, as follows:

  • Total assets are estimated to be at least $82,424,821,101.
  • The group’s assets exceed its liabilities.
  • The company’s reserve against issued digital tokens exceeds the amount required to redeem them.
  • Consolidated assets show a significant decrease in average maturity with an emphasis on short-term assets.

The report also reflects the increase in the group’s investments in the money market and US Treasury bills, which rose from $34.5 billion to $39.2 billion, an increase of more than 13%.

Read:Moves over $118 million to and from OKEx while withdrawals are suspended

Paolo Arduino, chief technology officer at Tether, commented on the report, saying:

The past week is a clear example of the power and resilience of Tether.

Tether is fully funded with its safe reserve and easy monetization.

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