Tether, the independent audit report has been announced. USDT’s excess reserves have reached the highest level in its history. The distribution of reserves is also quite striking. It carries US bonds from USDT reserves!
The largest share in USDT reserves, which is audited by the Italian audit firm BDO International, belongs to US treasury bills. With a total assets of $81 billion, 65 percent (two-thirds) of Tether’s assets are held in US government bonds. The total size of these bonds, which have a maturity of less than 90 days, reaches $53 billion.
$7.5 billion in repo
The second highest holding area is overnight reverse repurchase agreements (that is, it can simply be thought of as the overnight interest reserve held like cash). Third highest reserve money market funds. These funds consist of assets that can be converted into cash at any time and most of them have overnight interest.
One of the interesting sized assets held in the USDT reserve structure is secured loans. So what exactly are secured loans? In fact, this is a kind of collateral reserve that is quickly put into action during the crisis, which we saw how important its necessity and sufficiency was during the TerraLuna crisis. The category of “collateralized loans” includes loans that are overcollateralized by liquid assets subject to margin call and settlement mechanism. The size of this figure is at the level of 5.3 billion dollars.
How much gold, precious metals and Bitcoin are in Tether reserves?
Tether, which has a $ 3.4 billion reserve held in gold or other precious metals, has an investment of $ 2 billion classified in other categories and $ 1.5 billion held in Bitcoin. The amount of cash and bank deposits in USDT reserves is at the level of 481 million dollars.
Excess reserves close to 2.5 billion dollars
As for the consolidated liabilities of the group, its total liability is at the level of 79 billion dollars. In other words, the total net surplus reserve of USDT reaches 2.5 billion dollars. A portion of 79 billion 372 million 401 thousand 626 dollars of total liabilities of 79 billion 390 million 359 thousand 36 dollars is related to the issued digital tokens.
Let’s add that Tether’s excess reserves increased by $ 1.48 billion for the first quarter of 2023. This is the highest surplus reserve level in its history. It is also stated in the audit reports that USDT supply increased by 20 percent in this period (ie the first quarter of 2023).
Statement from Tether CEO: We have added new categories to the reserve distribution
“We are excited by the tremendous success of Tether in the first quarter of 2023, with our excess reserves reaching an all-time high of $2.44 billion,” said Paolo Ardoino, Tether CTO. was $1.48 billion, a testament to the strength and stability of our platform. We continue to monitor the risk-adjusted return on all assets in our portfolio on an ongoing basis, and we expect to make further changes as the overall economic environment changes and the market cycle progresses as part of our normal, ongoing risk management processes. Tether continues to evaluate the global economic environment and takes steps to ensure its clients’ funds are not exposed to high-risk scenarios. Looking at the second quarter, we have a very positive outlook and remain committed to transparency, so we added new categories to the distribution of reserves in our quarterly report to provide even greater transparency to our users.
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