A good fortune for the USDT – The society Tetherfrom the same group (iFinex) as the crypto-stock exchange Bitfinexhas been for quite a while harassed by American justice. Wishing to restore the reputation of its USDT stablecoin, Tether now regularly plays the game of transparency. The latest statements on his reservations are very encouraging.
Tether consolidates USDT reserves
For provide indexing of his stablecoin USDT on the US dollar (USD), Tether must have equivalent cash reserves. This is so that you can exchange 1 USDT for 1 USD no matter what.
So far, and despite (vain) speculation of short selling, Tether has perfectly succeeded in this bet. The composition of his reservations, however, seemed a little too unbalanced in favor of commercial papers (treasury bonds issued by a company). But this would have been recently rebalanced according to Paolo Ardoinochief technology officer (CTO) of Tether.
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Fewer corporate bonds, more US Treasuries
To clarify his tweet below, he first explains there that the proportion of USDT reserves in US treasury bonds (T-bills) increased by 43.5% (as of June 30, 2022) at 58.1% (as of September 30, 2022).
At the same time, the total value of commercial paper (CP) has gone below $50 million. In other words, very little in sight of 68 billion USDT issued (requiring as many dollar equivalents in cash).
Unlike corporate bonds, US Treasuries are deemed to be “zero risk of default”, since supported by the United States. Enough to to reassure the most skeptical of solidity USDT? Especially since, on the transparency side, Tether offered itself the services ofan audit heavyweight: BDO Italia.
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