Sunday, November 27, 2022
HomeAltcoinsTop stablecoin Tether unveils its reserve drop by $16 billion in the...

Top stablecoin Tether unveils its reserve drop by $16 billion in the Q2 of 2022

Tether, which is one of the world’s biggest stablecoins based on market value, said on August 19, that it had reserves of $66.4 billion at the end of June, which is a decrease from the $82.4 billion it had at the end of March.

The reserve statement that was published on Tether’s website comes only one day after the company said that it had moved to the auditing firm BDO Italia to certify its reserves and that it planned to submit monthly reports by the end of the year.

Stablecoins have been pointed out as a potential threat to the whole financial system by authorities from across the globe, and the United Kingdom is among the main ones looking into ways to regulate the industry. Tether claims that the value of its currency is preserved by keeping dollar-denominated reserves that are equal to or greater than the value of Tether coins currently in circulation.

According to the statement released by BDO Italia, Tether’s reserve assets of $66.4 billion are more than its liabilities of $66.2 billion. According to the statement, the amount of U.S. Treasury bills held by the government decreased to $28.9 billion during the second quarter. This represents a decrease of $10.3 billion when compared to the amount of $39.2 billion held during the first quarter.

The market value of commercial paper and certificates of deposit fell to $8.4 billion, representing a decrease of $11.7 billion. Tether said in July that it had reduced the amount of commercial paper it held as part of a strategy to lower its exposure to assets that carried a higher level of risk.

Paolo Ardoino, the CTO of Tether, said that the business will have reduced its holdings of commercial paper to $200 million by the end of August and will have eliminated all of its assets by the end of October.

Read more on CryptoShrypto:
Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

eighteen − 18 =

- Advertisment -

Most Popular