In what could prove to be a sigh of relief to crypto investors, Tether’s newly released attestation report reveals positive outlook on the stablecoin’s reserves. The company’s latest quarterly assurance opinion demonstrates the strength of Tether fund reserves. It reveals significant reductions in Tether’s commercial paper investments and an overall increase in U.S. treasury bills.
The world’s largest stablecoin boosted its holdings of U.S. government debt by over 13% to $39.2 billion. At the same time, the company reduced its exposure to commercial paper in the first quarter of 2022. The company said this demonstrates its consolidated assets exceed its consolidated liabilities.
Key Figures After UST Crash
This gains prominence in the wake of the recent meltdown in Terra’s ecosystem. The lack of sufficient reserves to support the supply of Terra tokens led to a 99% price decline. This has also led to widespread debate around the trustworthiness of stablecoins.
The 17% decrease in commercial paper holdings is followed by a further 20% reduction since April 1 2022. According to the attestation report, Tether’s total consolidated total assets stand at around $82 billion.
Also, the consolidated group’s reserves held for the digital tokens issued exceeds the amount required to redeem the digital tokens issued. The report also shows a 13% increase in Tether’s investments in money market funds and U.S. treasury bills.
‘Tether Fully Backed’
Paolo Ardoino, Tether CTO, said the attestation report confirms that Tether has adequate fund reserves. He further 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 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.”
However, Tether continues to be affected by the current market crash. Due to extreme selling pressure, Tether’s total circulating supply plummeted by about $9 billion to $74 billion since the beginning of the month.
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