Tether’s Attestation Report Reveals Positive Outlook on Stablecoin’s Reserves

The post Tether’s Attestation Report Reveals Positive Outlook on Stablecoin’s Reserves appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide

Tether’s recently issued attestation report indicates an optimistic view of the stablecoin’s reserves, which may come as a relief to crypto investors. Tether fund reserves are strong, according to the company’s latest quarterly assurance report. It shows large decreases in Tether’s commercial paper assets and an increase in US Treasury bills overall.

The largest stablecoin in the world increased its holdings of US government debt by nearly 13% to $39.2 billion. At the same time, in the first quarter of 2022, the corporation lowered its exposure to commercial paper. According to the corporation, this shows that its consolidated assets outnumber its consolidated liabilities.

This is especially important in light of Terra’s recent environmental catastrophe. The price of Terra tokens dropped by 99 percent due to a lack of reserves to support the supply. This has sparked extensive debate over the reliability of stablecoins.

Since April 1, 2022, the 17 percent drop in commercial paper holdings has been followed by a 20 percent drop. Tether’s total consolidated total assets, according to the attestation report, are roughly $82 billion.

Furthermore, the consolidated group’s reserves for the digital tokens issued exceed the amount needed to redeem the digital tokens. Tether’s investments in money market funds and US Treasury notes have increased by 13%, according to the study. 

Is Tether fully backed?

The attestation report, according to Tether CTO Paolo Ardoino, indicates that Tether has appropriate fund reserves. He further stated,

“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 honor 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.”

The recent market meltdown, however, continues to damage Tether. Since the beginning of the month, Tether’s total circulating supply has dropped by about $9 billion to $74 billion due to intense selling pressure.

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