The reserves for stablecoin issuer Tether contained roughly 86% money and money equivalents as of September 30, based on a brand new attestation report from accounting agency BDO. That is the very best proportion of money and money equivalents which have ever made up Tether’s reserves.
Tether in the present day releases its attestation for Q3 /2023.- money & money equal portion of reserves is all time excessive at 85.7%, yielding ~$1B
— Paolo Ardoino (@paoloardoino) October 31, 2023
In response to the report, $56.6 billion value of reserves are in U.S. Treasury payments with a maturity date of lower than 90 days. In the meantime, one other $8.8 billion was held in reverse repurchase agreements involving these payments. There was $8.2 billion in U.S. Cash Market funds pegged to $1 per be aware and $292 million in money and financial institution deposits. One other $65 million is held within the type of treasury payments from international locations apart from the U.S.. The overall amount of money and money equivalents is roughly $74 billion, which is 85.73% of Tether’s complete reserves of $86.4 billion.
The report additionally exhibits that Tether has diminished its reliance on secured loans as a way of elevating income. Secured loans now make up solely $5.1 billion value of USDT reserves, which is roughly $336 million lower than what the earlier report confirmed. Tether was criticized in September for continuing to make secured loans after beforehand stating that it will wind these down.
In an accompanying weblog submit, Tether forecast an additional discount in loans by the shut of day on October 31. A further $1.1 billion in loans will probably be wound down by this date, at which level solely $900 million in loans will stay as a part of reserves.
BDO publishes attestations of Tether’s reserves each quarter, with a one-month lag between the top of the quarter and the publication of the report. Tether claims that it is working on a system to provide real-time audit reports in 2024.