Tether Holdings Limited, the company behind the USDT stablecoin, released an independent accountant report on Monday claiming that its tokens are fully backed by its reserves.
Moore Cayman, an accounting network based in the Cayman Islands, reviewed Tether’s latest Consolidated Reserves Report, or CRR, and determined that the company met its reserve obligations for the period that ended on June 30, 2021.
According to the report, Tether’s consolidated total assets amounted to at least $62,773,190,075 for the reporting period. The company’s consolidated total liabilities were $62,628,932,116, of which $62,610,829,196 were related to USDT.
Moore Cayman’s opinion on the matter is stated as follows:
“In our opinion, the CRR as prepared by the management of Tether Holdings Limited group as of 30 June 2021 at 11:59 PM UTC, is presented in accordance with the criteria set out therein and is, in all material respects, fairly stated.”
Tether’s consolidated assets were said to be worth $41,017,565,708 as of April 29, 2021.
The June report further revealed that cash and cash equivalents amounted to $53.3 billion of Tether’s total assets. This included $30.8 billion in commercial paper and certificates of deposit, $6.2 billion in cash and bank deposits, $1 billion in reverse repo notes and $15.2 billion in Treasury bills.
Secured loans not related to any of Tether’s affiliates amounted to $2.5 billion. The company also held over $4.8 billion in corporate bonds, funds and precious metals. A little over $2 billion were held in “other investments” including digital tokens.
Tether revealed its asset breakdown for the first time in May of this year. As of March 31, 2021, commercial paper accounted for 65.39% of its “cash, cash equivalents, other short-term deposits and commercial paper” category. For the June reporting period, that figure had fallen to 57.72%.
The market capitalization of USDT currently stands at $62.6 billion, according to industry data. USDT remains by far the world’s largest stablecoin, though its share of the overall market has declined as major competitors like USDC continue to grow in popularity.
Tether minted its 50 billionth coin in April as Bitcoin (BTC) and other cryptocurrencies reached new all-time highs. The second leg of the bull market, which appears to be underway this month, could ignite bigger demand for dollar-pegged stablecoins in the near future.