Tether, the stablecoin issuer, has reported a robust financial position with total assets amounting to $86.1 billion and total liabilities of $82.8 billion. This confirms a remarkable reserve backing of over 100%. To ensure stability within the Tether ecosystem and instill confidence among its stakeholders, Tether maintains a substantial liquidity cushion of approximately $3.3 billion.
In its reserves report as of August 24, Tether reveals a combined surplus in shareholder capital amounting to $3.29 billion, which is distributed across 15 different blockchain ecosystems. With the exception of Algorand and Polygon, Tether retains the authority to issue USDT tokens in the millions, reinforcing its commitment to maintaining a robust financial position.
Out of the lot, the Solana ecosystem leads in terms of the value pre-authorized for issuance, currently standing at $1.57 billion, with Ethereum and Tron taking up the next two slots with pre-authorization of $617 million and $353 million respectively. Tether has not yet responded to Cointelegraph’s request for comment about the importance of issuance preauthorization when it comes to ensuring transparency and trust among the masses.
The total assets under Tether stand at $86.1 billion with total liabilities amounting to $82.8 billion — thus confirming a reserve backing of over 100%. The other non-US dollar stablecoins that fall under Tether’s umbrella — XAUT, EURT, MXNT and CNHT — do not enjoy the same liquidity cushion as USDT.
As per the report, none of the other Tether-issued stablecoins have balances to cushion and maintain a 1-1 peg in times of crisis. In totality, Tether’s transparency report contradicts the ongoing concerns related to its liquidity and backing of assets. In Oct. 2021, Tether was fined $41 million by the Commodity Futures Trading Commission for sharing “untrue” statements about its reserve holdings. However, authorities have not flagged any recent Tether transparency reports issued ever since over the past two years.- Rewrite this paragraphsChatGPT
Among these, the Solana ecosystem leads the pack in terms of the pre-authorized value for issuance, currently standing at an impressive $1.57 billion. Ethereum and Tron follow closely, with pre-authorization amounts of $617 million and $353 million, respectively.
Tether has not yet responded to inquiries from Cointelegraph regarding the significance of issuance preauthorization in building transparency and trust among the public.
Tether’s financial statement underscores its robust position, with total assets reaching $86.1 billion and total liabilities at $82.8 billion. This reaffirms a reserve backing of over 100%.
It’s worth noting that the other non-US dollar stablecoins within Tether’s portfolio, including XAUT, EURT, MXNT, and CNHT, do not benefit from the same level of liquidity cushion as USDT. According to the report, none of these stablecoins issued by Tether maintain sufficient balances to ensure a 1-1 peg during times of financial stress.
In summary, Tether’s transparency report contradicts ongoing concerns about its liquidity and asset backing. In October 2021, Tether faced a $41 million fine from the Commodity Futures Trading Commission for disseminating “untrue” statements about its reserve holdings. However, there have been no recent regulatory red flags regarding Tether’s transparency reports over the past two years.