Stablecoin firm Tether Holdings Limited has come out to allay fears of a possible decline in the USD/USDT after the stablecoin lost its peg to the US dollar amid the $UST crash last week. Tether (USDT), the world’s largest stablecoin, lost its peg to the US dollar earlier this month, sparking a wave of fear among investors and traders.
An Assurance Opinion from Tether (USDT) Amid Stablecoin Crash
Tether (USDT) has tried to allay the fears of investors and traders, the company has published its quarterly assurance opinion on its website, reaffirming that the stablecoin is fully supported.
“Today, Tether Holdings Limited released its latest quarterly assurance opinion, showing the strength of its reserves, showing significant cuts in commercial paper investment and an overall rise in US Treasury bills. It also shows that the group’s consolidated assets exceed its consolidated liabilities,” the company said.
The advisory also shows that the group’s consolidated assets exceed its consolidated liabilities, it reported that Tether, “demonstrated a further decline of approximately 17% in its commercial paper holdings in the previous quarter from $24.2 billion to $4 billion.” 20.1 billion; an action Tether has continued with a further 20% reduction since April 1, 2022 and that will be reflected in the Q2 2022 report.
Tether’s CTO Reiterates That Stablecoin Is Fully Backed
Paolo Ardoino of Tether took to Twitter to comment on the strength of Tether after the massive and seemingly irrevocable depeg of UST. He said,
“This past week is a clear example of Tether’s strength and resilience. Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days, Tether has never honored a redemption request from any of its verified clients. This latest statement further emphasizes that Tether is fully supported and that its reserves composition is strong, conservative and liquid.”
UST Stablecoin Crash: Tether’s Recent Depeg
The world of stablecoins took a major hit in recent weeks when one of the largest stablecoins UST went to dust. This also appears to have impacted USDT as the coin lost its peg and dropped to $0.95.
Tether is believed to be backed by cash short-term debt obligations corresponding to an equivalent dollar amount deposited by the users. Those assets are held in a reserve managed by a company of the same name. The stablecoin has since reclaimed its pen.
Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously, he was a co-founder of Govt. of India supported startup InThinks and is currently editor-in-chief at Coingape and CEO at SquadX, a fintech startup. He has published over 100 articles on cryptocurrency and blockchain and has assisted a number of ICOs in their success. He co-designed an industry training for blockchain development and has conducted many interviews in the past. Follow him on Twitter @shamasunil8114 and contact him at sunil (at) coingape.com
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This post Stablecoin Tether ($USDT) Reveals Reserves Fully Backed in New Report
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