Tether’s Excess Reserves Rise to $7.95 Billion, Further Strengthening Its Redemption Buffer
When assessing stablecoin reserves, it’s important to look not only at the total value of assets, but also at their ability to generate profits in a high-interest-rate environment and the share of highly liquid assets available during extreme market conditions.
On October 30, Tether released its third-quarter attestation report, prepared by accounting firm BDO. As of September 30, Tether held total reserve assets of $191.5 billion against liabilities of approximately $183.5 billion. This means its excess reserves—the safety buffer—reached $7.95 billion, nearly double the $4.1 billion recorded at the end of the second quarter.
A breakdown of its assets shows that highly liquid short-term U.S. Treasury securities and reverse repurchase agreements make up the vast majority, totaling as much as $132.4 billion. The reserves also include $19.1 billion in physical gold and $8.4 billion in Bitcoin held by Tether. Meanwhile, the supply of USDT remained steady at around $184 billion.
This structure shows that the reserve “cushion” above liabilities has grown substantially, objectively increasing confidence in USDT’s ability to meet redemptions under extreme stress. However, one variable remains: its profits are heavily dependent on a high-interest-rate environment. Tether earned $4.5 billion in net profit in the first three quarters, mainly from interest on U.S. Treasury securities. If the macroeconomic interest-rate environment reverses, its earnings momentum will also weaken. In addition, its combined holdings of gold and Bitcoin, worth around $27.5 billion, differ fundamentally from short-term Treasury securities in how reliably they can be liquidated during an extreme liquidity crunch.
When you read stablecoin reports, do you pay more attention to the absolute figure for total reserves or to the proportion of excess reserves—the safety buffer?
#USDT #Tether第三季度储备达1915亿美元
This is an objective review of publicly available information and mechanisms and does not constitute investment advice.
When assessing stablecoin reserves, it’s important to look not only at the total value of assets, but also at their ability to generate profits in a high-interest-rate environment and the share of highly liquid assets available during extreme market conditions.
On October 30, Tether released its third-quarter attestation report, prepared by accounting firm BDO. As of September 30, Tether held total reserve assets of $191.5 billion against liabilities of approximately $183.5 billion. This means its excess reserves—the safety buffer—reached $7.95 billion, nearly double the $4.1 billion recorded at the end of the second quarter.
A breakdown of its assets shows that highly liquid short-term U.S. Treasury securities and reverse repurchase agreements make up the vast majority, totaling as much as $132.4 billion. The reserves also include $19.1 billion in physical gold and $8.4 billion in Bitcoin held by Tether. Meanwhile, the supply of USDT remained steady at around $184 billion.
This structure shows that the reserve “cushion” above liabilities has grown substantially, objectively increasing confidence in USDT’s ability to meet redemptions under extreme stress. However, one variable remains: its profits are heavily dependent on a high-interest-rate environment. Tether earned $4.5 billion in net profit in the first three quarters, mainly from interest on U.S. Treasury securities. If the macroeconomic interest-rate environment reverses, its earnings momentum will also weaken. In addition, its combined holdings of gold and Bitcoin, worth around $27.5 billion, differ fundamentally from short-term Treasury securities in how reliably they can be liquidated during an extreme liquidity crunch.
When you read stablecoin reports, do you pay more attention to the absolute figure for total reserves or to the proportion of excess reserves—the safety buffer?
#USDT #Tether第三季度储备达1915亿美元
This is an objective review of publicly available information and mechanisms and does not constitute investment advice.