Tether’s Q3 Attestation Reveals $3.2 Billion Excess Reserves Backing USDT
Tether, a leading stablecoin provider, reported in its Q3 2023 report that it has $3.2 billion of excess reserves backing the value of its stablecoins, including USDT.
On October 31, Tether Holdings Limited published its Consolidated Reserves Report (CRR) for Q3 2023, which has been validated by the reputable global accounting firm BDO, revealing that the highest-ever percentage of Tether’s reserves is held in Cash and Cash Equivalents (C&Ceq), amounting to 85.7%.
As of September 30, 2023, the company’s consolidated assets amount to an impressive $86.4 billion, while its liabilities are at $83.2 billion. Notably, the majority of these reserves are in the form of US Treasury securities, such as direct T-bill investments, repurchase agreements, and deposits in money market funds, amounting to a substantial US$72.6 billion.
The breakdown of Tether’s reserves for Q3 2023 reveals that $56.6 billion is held in US Treasury bills with a maturity date of less than 90 days. Additionally, $8.8 billion is held in reverse repurchase agreements involving these bills, and $8.2 billion is in US Money Market funds pegged to $1 per note.
In a strategic move to fortify its reserves and investments, Tether has significantly reduced its reliance on secured loans. The latest report reveals that secured loans now constitute only $5.1 billion of USDT reserves, marking a notable reduction of approximately $336 million from the previous report.
Tether is on track to further decrease loans by the end of October, with plans to wind down an additional $1.1 billion, leaving just $900 million in loans as part of the reserves. The company’s vision is to gradually phase out secured loans, capitalizing on excess reserves and undistributed profits. As of
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