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Latest Report on Reserve Assets
Tether, Inc., which issues crypto assets (virtual currency) US dollar-denominated stablecoin “USDT”, released a report on reserve assets dated March 31, 2023 on the 10th. It also revealed for the first time the amount of gold (Gold) and Bitcoin (BTC) held.
USDT reserves increased by approximately ¥198.5 billion ($1.48 billion) in the first quarter (January-March) of 2023 to reach a record high of approximately ¥327.0 billion ($2.44 billion) . The increase comes from Tether’s net income.
In February of this year, an independent accounting firm, BDO International Limited, released a guarantee opinion dated December 31, 2010.
Tether had total consolidated assets of more than ¥10.9 trillion ($81.8 billion), which exceeded its total consolidated liabilities of about ¥10.6 trillion ($79.4 billion). This excess is held as a reserve.
It also disclosed that it holds approximately ¥456 billion ($3.4 billion) in gold and approximately ¥201.1 billion ($1.5 billion) in bitcoin.
About 4% and 2% of the portfolio.
Tether emphasizes the high liquidity of its reserves. It said it holds about 85% of its investments in cash, cash equivalents and other short-term deposits. Of the approximately $81.8 billion in total assets, US Treasury bills account for approximately $53 billion.
He added that the bank is reducing its reliance on bank deposits, which has been a concern due to recent financial instability, and is using the repo market as an alternative to maintain the necessary liquidity.
Tether also reported that it has continued to reduce its proportion of secured loans and commercial paper, reducing it from 8.7% to 6.5% of total assets. The background to this is that the Wall Street Journal reported in December last year that Tether was increasing the amount of its own tokens to be lent to customers, and that it may not be possible to redeem them in the event of a crisis. There is
connection: US Tether to strengthen asset reliability of USDT
Record net profit
“Our first quarter net profit of $1.48 billion was the highest ever,” said Paolo Aldoino, Tether’s Chief Technology Officer.
As part of our ongoing risk management process, we continue to assess global economic conditions and take necessary steps to ensure that our clients’ funds are not exposed to high-risk scenarios.
Aldoino emphasized that Tether values transparency. He added that the addition of details such as gold and bitcoin holdings in the report was also to increase transparency.
What is a stablecoin
A cryptocurrency whose price is always stable. Stablecoins are a type of cryptocurrency, and unlike BTC, ETH, and XRP, which have volatility, their purpose is to maintain their value ($1) backed by the US dollar. In addition to US dollar-backed stablecoins (USDT/USDC), there are also stablecoins that use algorithms.
Cryptocurrency Glossary
Draft Stablecoin Legislation
The U.S. House Financial Services Committee released a bipartisan draft of stablecoin legislation in April. We are discussing the content.
There is bipartisan consensus that stablecoins may be outside the security-versus-commodity debate and have the potential to evolve the U.S. payments system.
It also includes provisions that require stablecoin issuers to hold a reserve fund that backs up the balance of the stablecoin at “at least 1:1”.
connection: US House holds public hearing on stablecoin draft
The post Tether reveals gold and bitcoin holdings for the first time appeared first on Our Bitcoin News.
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