Stablecoin issuer Tether, on Friday, released an independent auditor report by BDO, a top five-ranked global independent public accounting firm. The report firmly reinforces Tether’s dedication to transparency and reveals yet another major cut to the firm’s commercial paper holdings.
By the 30th of June this year the CCR & BDO had confirmed a quarterly decrease upwards of 58% in the commercial paper holdings of Tether. The holdings dropped from $20 Billion to $8.5 Billion, which seems to be on track with Tether’s commitment to the community. The firm had previously announced their intentions to reduce the exposure to the commercial papers down to $200 Million by the end of August 2022 and turn it to zilch by the end of this year. On the other hand, Tether has ramped up its holding of cash and bank deposits by 32%!
Quoting the financial details from the report, Tether holds $28.9 billion in US Treasury bills, $6.8 billion in money market funds, cash and bank deposits of $5.4 billion, reverse repurchase agreements of almost $3 billion and non-US Treasury bills of $397 million.
The continued reduction in commercial paper investments by the firm instills a sense of assurance among the shareholders especially at a time when the markets have been highly volatile and people have started losing trust. Despite the odds, tether has managed to come out as a resilient company who is holding true to its name and values of transparency and dependability.
In the words of their CTO , Paolo Ardoino:
“We are fully committed to maintaining our role as the leading stablecoin in the market,” said Paolo Ardoino, CTO of Tether. “The utility of Tether continues to be supported by the transparency of its reserves and has been a leading source of stability allowing us to build a tool for the global economy. Our commitment to transparency and the community is a long-standing pillar in the underlying ethos of the company and aligns with our responsibility as a market leader. We have once again demonstrated that commitment by aligning with BDO, one of the world’s top accounting firms. We look forward to continuing down this path and are dedicated to setting a market standard to which our competitors and future stablecoins can look to for guidance
This move is part of a larger strategy to ensure that Tether has a diversified portfolio with limits to exposure on individual issuers or assets. Tether is the proud creator of the stablecoin industry and is leaving no stone unturned to increase the transparency in the stablecoin industry and manifesting the right path.
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