Assurance Opinion Once Again Re-affirms Tether’s Reserves Fully Backed; Reveals Significant Reductions in Commercial Paper and Increase in U.S. Treasury Bills 

by Tether | May 19 2022

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.

It 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. The attestation, completed by independent accountants MHA Cayman, re-affirms the accuracy of Tether’s Consolidated Reserves report, which breaks down the assets held by the group as of March 31, 2022:

  • Consolidated total assets amount to at least US$82,424,821,101.

  • The consolidated group’s consolidated assets exceed its consolidated liabilities.

  • The consolidated group’s reserves held for the digital tokens issued exceeds the amount required to redeem the digital tokens issued.

  • Consolidated assets show a significant average maturity reduction with focus on more short-term assets.

The latest report also shows an increase in the group’s investments in money market funds and U.S. treasury bills, which have gone up from $34.5B to $39.2B, an increase of over 13%. Additionally, the average rating of commercial paper & certificates of deposit has gone up from A-2 to A-1. Secured loans have also gone down by $1B. 

You can read the latest assurance opinion and the Consolidated Reserves Report here.

Paolo Ardoino, Tether CTO, 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. As promised, it demonstrates a commitment by the company to reduce its commercial paper investments and in doing so, led to a rise in its holdings in U.S. Treasury Bills. In fact, since April 1 2022, Tether has seen a further reduction of 20% in commercial paper which we will reflect in the  Q2 2022 report. As Tether's growth in the market continues to validate the business, we are pleased to share attestations now, and in the future, as part of our ongoing commitment to transparency.” 

For reference: historic statements:

How Tether USD₮ Is Able to Maintain Its Peg When Other Stablecoins Fall
Understanding Tether's Peg and Reserves

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