Tether (USDT) has maintained that its reserves are solid and fully backed, despite widespread concerns about stablecoin stability following the TerraUSD catastrophe.
Tether indicated on May 19 in its 2022 Q1 quarterly assurance opinion that the company’s current reserves have more consolidated assets than liabilities.
Tether stated the following:
“Tether Holdings Limited released its latest quarterly assurance opinion today, indicating the health of its reserves and revealing significant decreases in commercial paper assets and an overall gain in US Treasury bills. It also shows that the company’s consolidated assets outnumber its consolidated liabilities.”
The decision also said that the reserves have seen a decrease in commercial paper investments while increasing their holdings of US Treasury notes. Concerns regarding Tether’s reserves grew after it was revealed that investors withdrew more than $7 billion after USDT briefly fell below the dollar peg.
Tether, the largest stable coin in the crypto market, reported a 17% drop in commercial paper holdings in the last quarter, from $24.2 billion to $19.9 billion. The business said that another 20% discount will take effect on April 1, 2022.
Tether’s consolidated cumulative assets were $82.4 billion in the first quarter of 2022. However, the consolidated total liabilities for the period were not mentioned in the statement.
The corporation also claimed to have invested $39.2 billion in money market funds and US Treasury bills, up from $34.5 billion previously.
Following speculation that Tether would follow TerraUST’s lead and crash, the company’s CTO, Paolo Ardoino, stated that the stablecoin has already proven its worth.
Read more: Tether plans to reduce exposure to commercial debt
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