Cryptocurrency
Tether reveals a breakdown of its reserves for first time since 2014 launch
Tether reveals a breakdown of its reserves for first time since 2014 launch: (The Block) Stablecoin issuer Tether, for the first time since its launch in 2014, has revealed a breakdown of its reserves. The breakdown, shared with The Block on Thursday, is dated as of March 31, 2021. It shows that Tether held nearly […]
Tether reveals a breakdown of its reserves for first time since 2014 launch:
(The Block)
Stablecoin issuer Tether, for the first time since its launch in 2014, has revealed a breakdown of its reserves.
The breakdown, shared with The Block on Thursday, is dated as of March 31, 2021. It shows that Tether held nearly 76% of its reserves in cash and cash equivalents and other short-term deposits and commercial paper.
Commercial paper, in fact, formed the majority of its cash and cash equivalents category, with a 65% share. Fiduciary deposits formed 24% of the category, reverse repo notes 3.60%, treasury bills about 3%, and actual cash only 3.87%.
Source: Tether
When asked why actual cash formed only a tiny part of the total reserves, Tether’s general counsel Stuart Hoegner told The Block that it is “misleading to focus exclusively on cash” within the cash and cash equivalents category. “Readers should not confuse items not in ‘actual cash’ with a lack of liquidity,” he said.