Tether CTO: USDT Reserves is Fully Backed
Stablecoin firm Tether Holdings Limited has come out to allay fears of a possible USD/USDT decline after the stablecoin lost its peg to the US dollar last week amid $UST crash. Tether (USDT), the world’s largest stablecoin, lost its peg to the US dollar, earlier this month sending a wave of fear among investors and traders.
An assurance opinion by Tether (USDT) Amid Stablecoin Crash
Tether (USDT) has attempted to assuage fears of investors and traders, the firm has published its quarterly assurance opinion on its website reaffirming that the stablecoin is fully backed.
“Today, Tether Holdings Limited made available its latest quarterly assurance opinion demonstrating the strength of its reserves revealing significant reductions in commercial paper investments and an overall increase in U.S. treasury bills. It also demonstrates that the group’s consolidated assets exceed its consolidated liabilities,” the business said.
The opinion also demonstrates that the group’s consolidated assets exceed its consolidated liabilities, it reported that Tether, “shows a further approximately 17% decrease in its commercial paper holdings over the prior quarter from $24.2B to $20.1B; an action Tether has continued with a further 20% reduction since April 1 2022 and which will be reflected in the Q2 2022 report.
Tether’s CTO reiterates that the stablecoin is fully backed
Paolo Ardoino of Tether took to Twitter to comment on the strength of Tether following UST’s massive and seemingly irrevocable depeg. He said,
“This past week is a clear example of the strength and resilience of Tether. Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never once failed to honor a redemption request from any of its verified customers. This latest attestation further highlights that Tether is fully backed and that the composition of its reserves is strong, conservative, and liquid.”
UST Stablecoin Crash: Tether’s recent depeg
The world of stablecoins took a great hit this past few weeks as one of the largest stablecoins UST went to dust. This seems to have also affected USDT as the coin lost its peg and dropped as low as $0.95.
Tether is supposed to be backed by cash, short-term debt obligations corresponding to an equivalent amount of dollars deposited by its users. Those assets are held in a reserve managed by a company of the same name. The stablecoin has since reclaimed its peg.
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