10 Aug 2021 Simon Briggs
USDT Is Only 10% Backed By Cash, According To The Latest Tether Report
Tether, the world’s biggest stablecoin by market capitalization, published a report by the auditing firm Moore Cayman, showing only $6,282,756,692 cash and bank deposits back the project from a total of $62,773,190,075 in USDT backings. The remaining funds are split into several categories, including commercial paper and certificates of deposit, as well as reverse repo notes, treasury bills, secured loans ($2.5 billion), corporate bonds, funds & precious metals ($4.8 billion).
The 10% figure is a substantial increase from Tether’s May assurance report, which only showed that 3% of assets were backed by cash.
The Moore Cayman report also cites that Tether Holdings Limited, the company behind USDT, is the defendant in four ongoing legal cases.
“Any contingent liability in respect of these proceedings has not been accrued,” the auditing company reported.
The ongoing law cases against Tether, however, did not stop the stablecoin leader from holding its position as the gateway for entering the crypto sector.
Its ease of use and quick transaction times managed to put Tether at the forefront of traders’ decisions about stepping in and out of the crypto sector.
Meanwhile, Tether detailed for the first time the credit ratings of the commercial papers and certificates of deposit, saying that about 93% of them were rated A-2 or higher.
The report follows Tether’s release of yet another 1 billion USDT tokens into circulation. This makes the token supply increase over two times in 2021 alone.
Whale Alert, a tracker of large transactions, confirmed the 1 billion USDT mintings, on Monday, August 9th, and sent them to the TRON network. The newly minted 1 billion increases the total amount of USDT on the TRON Network to $32 billion.
Tether, however, has been accused numerous times of minting tokens that have no backing. Vitalik Buterin, the co-founder of Ethereum, also commented on the Tether minting, noting that the operation of Tether makes the crypto a ticking time bomb.Cryptocurrency Tether token cryptocurrency news crypto news Stablecoin USDT