More than 50% of Tether’s collateral is US Treasury bills

More than 50% of Tether’s collateral is US Treasury bills

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2022-10-09 22:05:43

From the beginning of 2022 until now, Tether – the company behind the stablecoin USDT has continuously reduced the amount of commercial paper it holds to increase the proportion of safer collateral assets. Currently, 58% of the collateral for stablecoin USDT is US Treasury bills.

Paolo Ardoino, Chief Technology Officer (CTO) of Tether, said that US Treasury bills currently account for 58.1% of the total collateral reserves of stablecoin USDT.

Disclosure from Tether CTO

Tweet: https://twitter.com/paoloardoino/status/1576876119328194562

According to Tether’s Q2 underwriting report, as of June 30, 2022, the company’s assets are worth $66.4 billion, with cash and bank deposits up 32% from 4.1 billion. USD to 5.4 billion USD. The amount of commercial paper held is 8.5 billion USD, accounting for 12.65%. The rest is the amount of US Treasury bills 43.45%.

Allocation of collateral assets ratio of the top 3 stablecoins in the market today
Allocation of collateral assets ratio of the top 3 stablecoins in the market today

Commercial paper is short-term, unsecured debt issued by a company. This form is also considered to be the most concerned holding, considering that Tether’s short-term loans are related to Chinese real estate. Therefore, Tether has continuously reduced this holding to strengthen customer confidence in the past time.

CTO Paolo Ardoino also shared that since September 1, commercial paper reserves have fallen below $50 million – down more than 58% from June 30, and treasury bills have increased by more than 14%.

The fact that US Treasury bills are accounting for 58.1% of USDT’s reserves further enhances the reputation of this stablecoin. Although it has not been officially disclosed, this information will most likely be published in Tether’s third-quarter margin report. New escrow updates are posted by the company’s CTO himself on Twitter.



#Tethers #collateral #Treasury #bills

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