Stablecoin issuer Tether has attracted attention with its recent Q3 2023 attestation report, which highlights a significant achievement in its financial management.
The report, independently audited by the prestigious firm BDO, reaffirms the accuracy of Tether’s Consolidated Reserve Report (CRR) and provides information on the assets the company had as of September 30, 2023.
The highlight of this report is the revelation that Tether has achieved the highest proportion of cash and cash equivalents (C&Ceq) in its reserves to date.
No less than 85.7% of the reserves are now made up of C&Ceq, signifying a commitment to maintaining liquidity and stability in the stablecoin ecosystem. This is a reassuring development for users and investors as it underlines the commitment to backing Tether tokens with real assets.
Importantly, the vast majority of these cash and cash equivalents are invested in US Treasury Bonds, amounting to a considerable amount of $72.6 billion, which includes direct and indirect exposure.
This choice of U.S. government-backed investment vehicles reflects a strategy that combines safety and liquidity.
The USDT report also highlights a reduction of more than $330 million in collateralized loans, demonstrating prudent financial management and transparency. This reduction further reinforces confidence in Tether’s ability to manage its financial assets responsibly.
Another impressive aspect of the report is the disclosure of C&Ceq’s investment returns, which are approaching $1 billion, thanks to strong risk management strategies.
The company’s investments in industry-related research fields, totaling more than $800 million since the start of the year, show a commitment to innovation and progress in the cryptocurrency space.
DESPITE VOLATILITY, TETHER MAINTAINS SURPLUS RESERVES
Even in the face of fluctuations in gold and Bitcoin prices, Tether’s financial position remains strong.
The recent increases in gold and Bitcoin prices have not only offset these fluctuations, but have also contributed to the overall strengthening of Tether’s financial stability.
BDO’s independent attestation confirms that consolidated assets continue to exceed its consolidated liabilities, providing greater peace of mind to its users and investors.