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Tether, the biggest stablecoin in the cryptocurrency market, has updated its reserve report. According to the updated report, as of August 24th, Tether’s total assets were announced as $86.1 billion, and total liabilities were $82.8 billion. Here are the highlights from the updated reserve report.
Reserve Ratio Exceeds 100%
Tether, the issuer of the largest stablecoin in the cryptocurrency market, USDT, with a market value of $82.81 billion, has updated its reserve report. According to the updated report, as of August 24th, Tether’s total assets were $86.1 billion, and total liabilities were $82.8 billion. The reserve ratio of Tether has exceeded 100%, surpassing an important threshold.
According to the report, Tether currently has a liquidity buffer of $3.29 billion across 15 different blockchains, and the total assets consist of USDT, EURâ‚®, CNHâ‚®, XAUâ‚®, MXNâ‚®.
What is Tether (USDT)?
USDT is a type of cryptocurrency and falls under the category of stablecoins. Stablecoins aim to maintain their value stable by being pegged to a specific asset or currency. Tether is pegged to the US dollar (USD) at a 1:1 ratio. This means that the theoretical value of each USDT is one US dollar. USDT issued and distributed by Tether is used to protect against volatility in the cryptocurrency market.
For example, an investor can switch to USDT, which has a more stable value, during periods of high volatility in the crypto market. This way, they reduce their risk with the guarantee of the US dollar. Tether issues USDT using various blockchain protocols, such as Ethereum‘s ERC-20 standard or Tron‘s TRC-20 standard.
However, Tether’s USDT cannot always maintain an exact equivalence to 1 US dollar, and there have been occasional debates about whether a full reserve is held for USDTs as promised. Although the company has conducted some audits in this regard, the issue is still controversial.
