{"id":20477,"date":"2023-07-31T14:30:51","date_gmt":"2023-07-31T14:30:51","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/tethers-excess-reserves-up-to-3-3b-holds-72-5b-worth-of-us-treasury-bills\/"},"modified":"2023-07-31T14:30:53","modified_gmt":"2023-07-31T14:30:53","slug":"tethers-excess-reserves-up-to-3-3b-holds-72-5b-worth-of-us-treasury-bills","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/tethers-excess-reserves-up-to-3-3b-holds-72-5b-worth-of-us-treasury-bills\/","title":{"rendered":"Tether\u2019s excess reserves up to $3.3B, holds $72.5B worth of US Treasury bills"},"content":{"rendered":"

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Tether\u00a0continues to increase its treasury reserve holdings backing circulating USDT (USDT)\u00a0tokens, according to its latest financial attestation for the second quarter of 2023.<\/p>\n

Tether Holdings published its Q2 attestation from accounting firm BDO, highlighting an $850 million increase in its excess reserves, which takes its total to $3.3 billion.<\/p>\n

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Tether Excess Reserves increase by 850M to reach $3.3B as Leading Stablecoin Reveals $72.5B overall exposure in US T-Bills and Unveils Energy-Related Investments.<\/p>\n

Read more https:\/\/t.co\/zoEHWMawEM pic.twitter.com\/N4vk3EUQnw<\/a><\/p>\n

\u2014 Tether (@Tether_to) July 31, 2023<\/a><\/p><\/blockquote>\n

The report also serves as the first time the company has disclosed its indirect exposure to United States Treasurys held by money market funds as well as U.S. Treasurys collateralizing its overnight repo:<\/p>\n

\u201cBy aggregating them together, the amount of Treasuries backing Tether\u2019s stablecoins is about $72.5B.\u201d<\/p><\/blockquote>\n

Speaking to Cointelegraph at Money2020 in Amsterdam in June, Tether chief technology officer Paolo Ardoino revealed that Tether\u2019s US Treasury bill holdings were equivalent to the amount held by sovereign nations like Mexico.<\/p>\n

Tether has looked to allocate company profits to build up excess reserves in the wake of the collapse of FTX and bankrupt cryptocurrency lending firms like Three Arrows Capital. The excess does not include the 100% reserves that Tether maintains to redeem circulating USDT tokens. <\/p>\n

Related:\u00a0<\/em><\/strong>Tether\u2019s game plan in El Salvador: Why invest in Volcano Energy?<\/em><\/strong><\/p>\n

Ardoino said that industry players that have undercollateralized assets or operations have created weak points in the wider cryptocurrency ecosystem, which has driven its decision to allocate shareholder profits to building a large excess reserve.<\/p>\n

\u201cWe believe that open communication and strong financials foster trust and reliability, and this is what the global community deserves especially in a year devastated by many failures across the banking and crypto industry.\u201d<\/p><\/blockquote>\n

Tether tipped its operational profits at $1 billion from April to June 2023, accounting for a 30% increase from Q1 2023. The improved quarterly performance also reflects a general surge across the cryptocurrency markets that was driven by the recent consolidation of Bitcoin (BTC) around the $30,000 mark.<\/p>\n

The 2023 Q2 report also notes that 85% of Tether\u2019s reserves are held in \u201cliquid\u201d investments of cash or cash equivalents. Tether\u2019s latest reserve attestation estimates its total assets at $86.4 billion.\u00a0Tether\u2019s outstanding liabilities in relation to circulating USDT tokens are estimated at $83.17 billion.<\/p>\n

The Q2 report also discloses that Tether\u2019s shareholders will carry out a $115 million share buyback to \u201cstrengthen\u201d its group. Profits from the second quarter have also been directed to \u201cother investments in energy-related initiatives.\u201d<\/p>\n

The company notes that energy-related initiatives are not included in its attestation report, as it does not consider the investment as a suitable reserve for circulating tokens.\u00a0<\/p>\n

Cointelegraph has reached out to Tether to clarify whether this specific investment refers to its recently announced $1 billion investment in\u00a0El Salvador\u2019s renewable energy project<\/p>\n

Magazine:\u00a0\u2018Elegant and ass-backward\u2019: Jameson Lopp\u2019s first impression of Bitcoin<\/strong><\/em><\/p>\n<\/div>\n