Cryptocurrency News

Tether Holdings announces its assurance opinion

Tether Holdings Limited comes out with its assurance opinion for the 2nd quarter of 2023. This has been drawn up by BDO, which is a fifth-ranking and independent public accounting company. The verification is in tune with the correctness of Tether’s Consolidated Reserves Report (CRR). This report decimates the assets belonging to the Group as on 3oth June 2023.

Further, the CRR brings forth total clarity where Tether’s reserves are concerned, revealing its awareness of US Treasuries belonging to money market funds, along with the ones that have collateralized its Overnight Repo. It also speaks of a rise in its surplus reserves, amounting to $850 million. In totality, the figure reached $3.3 billion at the end of the 2nd quarter.

Incidentally, surplus reserves are in relation to the company’s profits and are not allocated to shareholders. The company holds onto this over and above the 100% reserves that are utilized by Tether for supporting the outstanding tokens. Through this, Tether is able to effectively handle risk management and also by putting aside an added 4% in the form of assets in its reserve. Between April 2023 and June 2023, Tether’s profits remained more than $1 billion, equivalent to a 30% rise.

Tether will be divulging a share buyback to the tune of 115 million USD to boost the shareholder community. Also included are various investments related to energy which will be made from the profits accrued in the quarter. This is where the declared profit is separated from the rise in surplus reserves, as per the verification. There is no mention of the energy-based investment in the CRR.

There is liquidity in Tether’s reserves, and 85% of the investments are in the form of cash. Through the declaration, Tether is reiterating the fact that it comes with total clarity in terms of its direct as well as indirect exposure to US Treasury bills. Treasuries that support Tether’s stablecoins are roughly $72.5 billion.

The CRR and the BDO’s verification spells out the fact that Tether’s collective assets are in excess of its collective liabilities. As of the 30th of June, 2023, the Group’s collective assets stand at $86,499,251,218. In the case of collective liabilities, the figure stands at $83,200,775,340. Out of this, the digital tokens issued are $83,178,020,411.

According to the CTO of Tether, Paolo Ardoino, he takes immense pride in the fact that his company has kept up the tradition of being completely transparent in every deal, something that is more than proved through the reserves verification.

Edward Nash

Edward Nash is an editor and analyst with over 10 years of financial market experience. Prior to joining CoinNewsSpan, he worked in several famous financial institutions. He has been active in the cryptocurrency market since 2011, specializing in technical analysis of current crypto trends and offering analytical opinion-based pieces.

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