According to the latest assurance report by MHA Cayman, the reserves of Tether are fully backed.
The third party auditing firm found that the total assets owned by Tether are worth at least $82,424,821,101. On the other hand, Tether’s total liabilities (including the issued stablecoins) are worth $82,262,430,079.
These figures are in accordance with Tether’s unaudited Consolidated Reserves Report (CRR) as of March 2022. Thus, the stablecoin, USDT is fully backed.
Tether also announced yesterday that it has reduced its commercial paper holdings in its reserves from $24.2 billion to $20.1 billion. Tether further said that it has continued with a 20% reduction since April 2022, and that it will be reflected in the Q2 2022 report.
Tether has balanced this reduction with US Treasury bills, which have increased to a value of $39.2 billion in the Tether’s reserve.
MHA Cayman clarifies that its assessment only accounts for Tether’s reserves on March 31, not before or after that.
Stablecoins have been facing increased scrutiny since the downfall of the TerraUST, which caused investors across the globe to lose massive amounts of money. Infact, the price of USDT fell below $0.99 on several platforms after the crash of TerraUST.
As a result, Tether announced its coordination of a chain swap to move 1B USDT assets from Tron’s TRC-20 to Ethereum and Avalanche blockchain.