By Christopher Boltz
Tether Holdings Limited has gained a surge of confidence in the stablecoin domain following the release of its Q1 2023 attestation by a major accounting firm, BDO Italia, which is listed among the top five in the world. The declaration certifies Tether’s Consolidated Reserves Report (CRR), which details the team’s assets as of March 31, 2023. The verification is expected to bolster Tether’s image of clarity and liability, assuaging stakeholders and increasing market confidence.
Tether’s Consolidated Reserves Report Enhances Transparency
Tether Holdings Limited has released its latest Consolidated Reserves Report (CRR) for Q1 2, which includes new categories aimed at increasing transparency in the group’s reserves reporting. Physical gold, Overnight Repo, Corporate Bonds and Bitcoin ownership have been reported separately for the first time, providing investors with a more detailed overview of the group’s assets.
The CRR also reveals that Tether’s reserves surplus has surged to a record high of $2.44 billion, a significant increase of $1.48 billion from the previous quarter. This is yet another strong quarter for Tether, with $1.48 billion in net profit and a 20% surge in token circulation, indicating strong customer trust in the stablecoin.
This move towards greater transparency comes amidst increasing regulatory and investor scrutiny of the stablecoin market. By providing more detailed information about its asset holdings, Tether hopes to address concerns about its reserves and boost confidence in the stablecoin market.
The latest assurance opinion and CRR affirm Tether’s financial strength and commitment to transparency, potentially reassuring investors and reinforcing the group’s position as a leading stablecoin provider.
Tether’s Investment Approach and Enhanced Liquidity Measures
Tether concluded the initial quarter of 2023 with consolidated total assets amounting to $81.8 billion.The organization ended the first quarter of 2023 with a total of $81.8 billion in consolidated assets. A significant portion of its reserves has been invested in US Treasury Bills. Moreover, the organization has been proactively taking measures to decrease its dependence on bank deposits as a source of liquidity and exploring the Repo market as an alternative option.
Cash, cash substitutes, and other short-term funds account for around 85% of total reserves. Gold and Bitcoin constitute about 4% and 2% of the reserves, respectively. The most recent report highlights a 25% decrease in covered loans, from 8.7% to 6.5% of total reserves.
Furthermore, the maximum percentage of assets have been allocated to US Treasury Bills. All new tokens have been invested in US Treasury Bills or deposited in overnight repo. The corporation’s commitment to transparency is evident in this most recent report.
Tether’s investment approach and enhanced liquidity measures demonstrate the group’s commitment to maintaining a highly liquid and secure reserve portfolio. All new token issuance has been invested in US Treasury Bills or placed in overnight Repo, further reassuring investors and stablecoin users.
