Tether, the leading stablecoin based on the US dollar, has provided an update on the assets backing the digital currency. According to a Tweet distributed by Paolo Ardoino, Tether’s CTO, as of September 30, 2022, Tether held approximately 58.1% of assets in US Treasuries up from 43% in June. Commercial paper exposure is now said to be less than $50 million.
#tether portfolio update. Tether as of 30 September 2022 holds ~58.1% of its assets in US t-bills. Up from 43.5% on June 30 2022.
CP exposure is < 50M now.@Tether_to— Paolo Ardoino 🍐 (@paoloardoino) October 3, 2022
Ardoino added to his Tweet with the following statement:
“As promised, Tether will once again demonstrate a commitment to transparency in our next quarterly attestation. Portfolio updates to look out for include a reduction in commercial papers, now making up less than $50M of its reserves and the holding of 58.1% of its assets in US Treasury Bills. In the upcoming attestation report, Tether will continue to validate the business, the strength of its reserves, and further solidify its position as the industry’s leading stablecoin.”
Tether has battled allegations of shortfalls in its reserves backing the stablecoin for years. The stablecoin is typically used as an on/off ramp for individuals trading in crypto markets. Tether is the 3rd largest crypto by market cap following Bitcoin and Ethereum. Its biggest competitor, USDC issued by Circle, is the 4th largest crypto.
Looming legislation may impact the stablecoin market in the US as new rules may add additional scrutiny for stablecoin issuers and issuers may need to apply for a stablecoin license, or even be approved as a regulated bank.
