Tether maintains .3B in liquidity cushion: USDT transparency report

Stablecoin issuer Tether maintains a liquidity buffer of nearly $3.3 billion, providing stability to the Tether ecosystem and earning shareholder trust.

Tether’s reserves report as of Aug. 24 revealed a total shareholder capital buffer surplus of $3.29 billion — spread across 15 blockchain ecosystems. In addition to Algorand and Polygon, Tether also retains the right to issue millions of USDT (USDT) tokens.

Current Tether (USDT) balances as of August 24th. Source: Tether

Among them, the Solana ecosystem takes the lead in terms of pre-authorization issuance value, currently at $1.57 billion, followed by Ethereum and Tron, with pre-authorizations of $617 million and $353 million, respectively.

Tether has yet to respond to Cointelegraph’s request for comment on the importance of issuance pre-authorization in ensuring transparency and trust among the masses.

Tether balances for all Tether tokens (USDT, EURT, CNHT and MXNT).Source: Tether

Tether has total assets of $86.1 billion and total liabilities of $82.8 billion, thereby confirming that it is more than 100% backed by reserves.

Tether’s other non-USD stablecoins — XAUT, EURT, MXNT, and CNHT — do not enjoy the same liquidity buffer as USDT. According to the report, none of the other Tether-issued stablecoins have the balance to buffer and maintain a 1-1 peg in times of crisis.

Overall, Tether’s transparency report contradicts ongoing concerns about its liquidity and asset backing. In October 2021, Tether was fined $41 million by the Commodity Futures Trading Commission for sharing “untrue” statements about its reserve holdings. Since then, however, authorities have not flagged any recently released Tether transparency reports in the past two years.

related: Tether CTO Paolo Ardoino Says Bitcoin Mining Needs Better Analytical Tools

Tether recently discontinued its Bitcoin (BTC) version of USDT, called Bitcoin OmniLayer.

While no new Tether tokens will be issued on Bitcoin Omni Layer, Kusama, or Bitcoin Cash in the future, redemptions will still be available for at least one year from the date of announcement.

The OmniLayer team was “challenged by the lack of popular coins and availability of USDT on other blockchains,” which led exchanges to use other transport layers instead of Omni. Tether claims that if the usage of Omni increases, it will consider re-releasing the Omni Layer version.

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