Tether reveals the underside of its reserves – THE stablecoin of Tether is not a newcomer to the world of decentralized finance (DeFi). Indeed, it was one, if not the first stablecoin to be created. Now, the Tether company has just reveal previously unknown details about his reservations. More transparency for more trust on the part of users.
Tether unveils gold and Bitcoin in its reserves
Tether’s USDT is a so-called centralized stablecoin. Therefore, each USDT issued is supposed to be backed by a dollar held by Tether in a Bank. In reality, Tether does not hold its entire capitalization in cash to cover its stablecoin. Thus, the company has $82 billion in assetsincluding cash and other assets.
It just fell, BDO Italy published its latest attestation report for Tether. In practice, BDO Italia was responsible for conduct an independent audit of the Tether company’s reserves.
Through its report, the firm has revealed that BTC represents approximately $1.5 billion of the stablecoin issuer’s reservesor about 2% of the total, at the end of the first quarter.
The accounting firm has not included Bitcoin as a separate item in previous reports.
Alongside, precious metals have also been detailed in the report. Thus, we learn that Tether holds around $3.4 billion in precious metalsor approximately 4% of total reserves.
In a statement accompanying the announcement, Tether clarified that it has included this information about its Bitcoin and precious metals reserves to provide more transparency to holders of the USDT stablecoin:
“The CRR (Consolidated Reserves Report) provides for the first time, additional categories in an effort to increase the transparency of the Tether Reserves Report. Physical gold, Overnight Repo, corporate bonds, and Bitcoin ownership were reported separately. »
Indeed, until now the details of Tether’s account sheets had remained relatively opaque.
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Record Growth and Increased Token Circulation
The statement also points out that Tether has made a profit of $1.48 billion during the first trimester. Moreover, the number of USDT in circulation increased by 20%. As a result, Tether’s total reserves have peaked at around $81.8 billion.
This recent growth of Tether could in part be due to the decline of its main competitor, Circle’s USD Coin. Indeed, the USDC has briefly depreciated in the secondary market in March due to concerns over its exposure to Silicon Valley Bank.
Although the currency quickly regained parity with the dollar, its market capitalization continued to decline. Circle CEO, Jeremy Allairemeanwhile cited the United States regulatory crackdown on cryptocurrencies as another factor in this recent decline.
However, all these beautiful people could one day be replaced by decentralized stablecoins. So, the Curve protocol recently deployed its own stablecoin: the crvUSD.
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