Tether’s reserves are fully backed, according to latest assurance opinion

Published at: April 29, 2021

Moore Cayman, a Cayman Islands-based accounting network, has again affirmed that Tether Holdings Limited’s USDT stablecoin tokens are fully backed by its reserves. 

In the latest report, signed on March 31 and released Thursday, Moore Cayman confirmed that Tether’s consolidated assets exceeded its liabilities.

“In our opinion, the [Consolidated Reserves Report] by the management of Tether HOldings Limited group as of 31 March 2021 at 11:59 PM UTC, is presented in accordance with the criteria set out therein and is, in all material respects, fairly stated,” the report read.

The independent evaluation found that Tether’s total consolidated assets were valued at $41,017,565,708. Total liabilities amounted to $40,868,295,798, with $40,855,204,950 related to digital tokens issued.

Moore Cayman completed a similar review one month earlier and came to the same conclusion regarding Tether’s reserves. At the time, the company’s total assets were $35.3 billion versus liabilities of $35.2 billion.

Although many have questioned the validity of Tether’s one-for-one peg with the U.S. dollar, the latest assurance reports suggest the firm is meeting its obligations. Tether agreed to submit periodic reports about its reserves in February after concluding an $18.5 million settlement with the Office of the New York Attorney General. At the time, New York authorities alleged that Tether’s parent company misrepresented the degree to which USDT was backed by collateral.

Tether achieved a major milestone earlier this week as its market capitalization eclipsed $50 billion for the first time, underscoring the continued growth of stablecoins during the bull market. A $50 billion market cap implies more than 50 billion USDT in circulation.

As of Thursday, Tether’s market cap had reached $51 billion, according to Coingecko.

USDT remains the dominant stablecoin for cryptocurrency traders, accounting for around 65% of the overall market capitalization. USDC, the second-largest stablecoin by market cap, accounts for just 14%.

Tags
Related Posts
Circle’s USD Coin Sees Major Growth After Market Downturn
As Bitcoin (BTC) and the cryptocurrency market at large experience a major downturn, people turn to stablecoins in an attempt to preserve their capital. Some stablecoins have grown more than others, however. Stablecoin marketcaps are generally expected to increase after a major cryptocurrency market downturn. However, this is not what happened for most stablecoins during the past week. According to data from Coin360, Bitcoin has fallen from a height of nearly $8,000, down to under $4,000 between March 12 to March 13. Bitcoin 7-day price chart. Source: Coin360 USDC market cap sees major growth Jeremy Allaire, the co-founder and CEO …
Bitcoin / March 15, 2020
Fiat-Backed Stablecoins ⁠— Attempt to Take the Best of Both Worlds
Stablecoins attempt to be fiat currencies among cryptos. They can be a medium of exchange, a means of storing value and a unit of account. Unlike other digital coins, stablecoins are tied to some kind of stable asset — such as the United States dollar, euro or even gold. Linking to such assets confirms the coin’s stability and mitigating the volatility of cryptocurrencies. Related: Stablecoins Explained With this type of a token, an equal amount of fiat currency should be stored by the issuing company to back the value of the token. The owner of this token should be able …
Bitcoin / Oct. 6, 2019
Tether Re-Opens Direct Redemption of Fiat, While Bitfinex Adds Tether-Fiat Trading Pairs
Popular stablecoin Tether has announced 1:1 redemptions of USDT to fiat, while affiliated crypto exchange Bitfinex added two new Tether-fiat trading pairs, according to announcements from both firms Tuesday, Nov. 27. Tether announced the direct redemption of Tether to fiat along with a major redesign of its platform for the verification of new customers. According to the official announcement, the update allows users to redeem their tokens on the Tether.to platform at a USDT to fiat ratio of 1:1. All Tether deposits and withdrawals are zero-fee, while fiat transfers are are subject to commissions. Tether customers will be limited to …
Altcoin / Nov. 27, 2018
Binance Renames Its USDT Market to Combined Stablecoin Market
Major cryptocurrency exchange Binance has renamed its Tether (USDT) Market to be a combined Stablecoin Market (USDⓈ), according to an announcement published Nov. 26. This will purportedly allow the exchange to support more trading pairs of stablecoins. The exchange also notes that USDⓈ is not a new stablecoin, but the symbol of Binance’s new stablecoin market. Binance will deliver a separate announcement about what exact pairs will be moved or added to this market. The move follows the Nov. 15 announcement that Binance would start listing blockchain payment company Circle’s USD-pegged stablecoin USD Coin (USDC). Prior to that, Binance added …
Markets / Nov. 27, 2018
Tether to launch GBPT stablecoin pegged to British pound sterling
Major stablecoin company Tether is expanding its stablecoin offering with a new cryptocurrency pegged to the British pound sterling (GBP). Tether officially announced on Wednesday that its upcoming GBP-pegged stablecoin, GBPT, will launch in early July and will initially be supported by the Ethereum blockchain. GBPT will be a stable digital currency pegged on the 1:1 ratio to the GBPT, aiming to provide a faster and cheaper option for asset transfers. GBPT joins a family of four other fiat currency-pegged Tether (USDT) tokens, including the largest stablecoin by market capitalization, USDT. Other stablecoins include the euro-pegged EURT, the offshore Chinese …
Blockchain / June 22, 2022