Summary:
USDT stablecoin issuer Tether released the most recent report on its reserves.The report was independently audited by BDO, a significant accounting firm ranked in the most notable five globally.Friday’s audit revealed an additional decrease in the firm’s commercial paper holdings during the last quarter.Cash holdings and bank deposits increased aswell, per the audit.Tether previously announced plans to shrink commercial paper holdings to zero by the finish of 2022.The digital asset firm still holds around $8.5 billion in short-term debts at press time.
Tether, the digital asset firm behind crypto’s largest stablecoin USDT, released its quarterly assurance report independently audited by way of a top-ranked public accounting outfit called BDO on Friday.
The stablecoin issuer tapped BDO’s service as a way to help expand validate the Consolidated Reserves report released earlier. Indeed, the report centered on assets held by the business as of the finish of Q2 2022.
Tether Releases Independent Auditor Report From Top 5 Accounting Firm BDO, Reinforcing its Dedication To Transparency And Revealing Another Major Cut To Commercial Paper Holdingshttps://t.co/an5O5KX8xd
– Tether (@Tether_to) August 19, 2022
BDO Report Confirms Tether’s Report On Its Stablecoin Reserves
In accordance with BDO’s assessment of Tether’s reserves, commercial paper holdings dropped by 58%. Over the last quarter of 2022, the quantity of such holding inside the firm’s reserves shrunk from $20 billion to $8.5 billion.
Notably, this aligns with previous rhetoric from CTO Paolo Ardoino regarding plans to significantly reduce short-term corporate debt held by stablecoin issuer. Ardoino was quoted earlier in the entire year the fact that digital asset giant would decrease its commercial paper to zero by the finish of 2022.
CTO Paolo Ardoino (Source: Finyear)
Within the last quarter, the business also propped up cash holdings and bank deposits by some 32%, per Friday’s audit report. Furthermore, Friday’s audit reaffirmed the firm’s reserve assertions for assets held by June 30, 2022.
The Group’s consolidated total assets total at the very least US$ 66,409,619,424.The Group’s consolidated total liabilities total US$66,218,725,778, which US$ 66, 204,234,509 pertains to digital tokens issued.The Group’s consolidated assets exceed its consolidated liabilities.The full total gross consolidated contractual redemption value linked to all digital tokens issued, including those held by Group is add up to US$ 66,430,393,253.The consolidated amount linked to digital tokens held by Group however, not in its treasury wallet is add up to US$ 226,158,744.
By June 30th, a lot more than 58% reduction in Tether’s commercial paper holdings on the prior quarter from $20B to $8.5B.
CP portfolio will undoubtedly be $200m by end of August and 0 by end of October. https://t.co/g5lJgs1r3n
– Paolo Ardoino 🕳🥊 (@paoloardoino) August 19, 2022
At press time, Tether’s USDT remains the best stablecoin in crypto with over $60 billion in market cap. Circle’s USDC is the closest competitor with a market cap above $50 billion, per data from CoinMarketCap.
Ardoino opined that this firm plans to maintain its spot at the top while delivering utility for that global digital economy.
USDT Market Cap (Source: CoinMarketCap