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Tether (USDT), the largest stablecoin in terms of market value and investor interest, has faced numerous FUDs in the past. However, with the company undergoing scrutiny from reputable audit firms such as BDO, investors can breathe a little easier. The latest report, released today, contains important details.
Tether (USDT) Audit Report
Tether Holdings Limited has shared the results of an examination conducted by BDO, one of the top 5 independent audit firms globally. The report reaffirms the accuracy of Tether’s Consolidated Reserves Report (CRR) as of June 30, 2023, which provides more transparency on Tether’s reserves. For the first time, the CRR reveals Tether’s indirect exposure to US Treasury bonds held by Money Market Funds and its exposure to US Treasury bonds collateralizing Overnight Repos.
According to the report, Tether’s excess reserves have increased by an additional $850 million, reaching $3.3 billion. It is important to note that this additional balance held by the company is separate from the 1:1 backing of the issued tokens. The report states:
“Given recent challenges in the banking and crypto sectors, the fact that players are often highly undercollateralized weakens the entire system. Tether, by making sound risk management decisions and taking care of its community, holds nearly 4% of its assets in reserves.”
Tether reserve details
Tether’s Earnings and Investments
Tether’s operational profit for the period between April 2023 and June 2023 was announced to be over $1 billion. This represents a significant increase of 30% between the two quarters. The report also discloses Tether’s share buyback of $115 million, which is a healthy consolidation sign to further strengthen the shareholder group, and other investments financed by this quarter’s earnings in energy-related ventures.
“Tether’s reserves continue to remain highly liquid, with 85% of its investments held in cash and cash equivalents. With this latest report, Tether once again demonstrates its commitment to transparency by disclosing its direct and indirect exposure to US Treasury bonds (via Money Market Funds) and the collateralization of Overnight Repos with Treasury bonds. When combined, the amount of Treasury bonds supporting Tether’s stablecoins is approximately $72.5 billion. The CRR confirms that Tether’s consolidated assets once again exceed its consolidated liabilities, and this is further confirmed by the independent attestation by BDO. The group’s total consolidated assets amount to at least $86,499,251,218 US dollars.”
