Tether, the issuer of the popular stablecoin USDT, has seen an increase in its cash and cash equivalents in its reserves, according to a recent assurance report by accounting firm BDO. The report reveals that, as of September 30, Tether's reserves were composed of approximately 86% cash and cash equivalents, marking the highest proportion of such assets in the company's history.
The assurance report specifies that a substantial portion of these reserves, totaling $56.6 billion, consists of U.S. Treasury bills with maturities of less than 90 days. Additionally, $8.8 billion is held in reverse repurchase agreements involving the notes, and another $8.2 billion is tied to U.S. money market funds for each note. There is also $292 million in cash and bank deposits, with an additional $65 million in the form of Treasury securities from countries other than the United States. In total, cash and cash equivalents make up approximately $74 billion, accounting for 85.73% of Tether's total reserves, which amount to $86.4 billion.
Furthermore, the report highlights a shift in Tether's approach to generating revenue, as the company has reduced its reliance on secured loans. The value of secured loans in USDT reserves now stands at $5.1 billion, approximately $336 million less than previously reported figures. Tether faced criticism in September for continuing to offer secured loans after announcing a gradual reduction.
Tether has been transparent with its reporting, as BDO releases proof of its reserves every quarter, with a one-month delay between the end of the quarter and the publication of the report. Tether has also announced plans to develop a system that will provide real-time audit reports by the year 2024.
