Tether Holdings has released an independent accountant reserves report in an effort to show that USDT is indeed fully backed.
The consolidated reserves report, done by MHA Cayman, finds that Tether’s total assets amount to at least $82.42 billion, and its total liabilities amount to $82.26 billion, of which $82.18 billion relates to digital tokens issued. The attestation states that Tether’s consolidated assets exceed its consolidated liabilities and that its consolidated reserves held for its digital assets issued exceed the amount required to redeem the tokens issued.
All information is accurate as of March 31, 2022, according to the report.
MHA Cayman wrote that the since the digital asset industry is nascent and innovating rapidly, “any users of digital assets, including those tokens issued by [Tether], should first inform themselves of the general risks and uncertainties of the industry, including as to evolving legal
and regulatory requirements,” adding “Users of Tether tokens should familiarize themselves with the risk disclosures, as they may be changed and updated from time to time…”
Tether has long faced skepticism regarding the nature of its reserves and the backing behind its USDT token, which remains by far the biggest stablecoin in the crypto market. Skepticism was revamped this month as the dramatic collapse of TerraUSD put the spotlight back on stablecoins, even though UST was unique in that it was algorithmic.
In a blog post, Tether CTO Paolo Ardoino said:
“This past week is a clear example of the strength and resilience of Tether. Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never once failed to honour a redemption request from any of its verified customers. This latest attestation further highlights that Tether is fully backed and that the composition of its reserves is strong, conservative, and liquid.
As promised, it demonstrates a commitment by the company to reduce its commercial paper investments and in doing so, led to a rise in its holdings in U.S. Treasury Bills. In fact, since April 1 2022, Tether has seen a further reduction of 20% in commercial paper which we will reflect in the Q2 2022 report. As Tether’s growth in the market continues to validate the business, we are pleased to share attestations now, and in the future, as part of our ongoing commitment to transparency.”