Tether Holdings, the organization behind the popular stablecoin Tether (USDT), is reportedly working on a plan to provide real-time updates of its reserve data. Paolo Ardoino, Tether's Chief Technology Officer and incoming CEO, has revealed that the company intends to begin publishing its reserve data in real-time starting in 2024. This move aims to enhance transparency and trust in Tether.
Currently, stablecoin issuers, including Tether, update their reserve data at least once a day and release quarterly reserve reviews along with monthly reserve reports. This practice helps provide insights into the backing of these stablecoins, which are designed to maintain a stable value, typically pegged to a fiat currency like the US dollar.
While the cryptocurrency market has experienced some fluctuations in 2023, Tether and other stablecoin issuers have witnessed growth. Tether's assets increased by 5.7% to reach $86.5 billion in the second quarter, and the company reported an operating profit exceeding $1 billion, up by 30% from the previous quarter. Notably, Tether's stablecoin lending activity saw an increase, even though it had previously halted such lending in December 2022.
In addition to the reported figures, Tether also disclosed its indirect exposure to $72 billion worth of U.S. Treasuries held by money market funds, along with U.S. Treasuries used as collateral for its overnight repurchase agreements. These revelations contribute to Tether's transparency efforts as it seeks to offer real-time reserve data to the public, thereby fostering more trust among its users and the wider crypto community.
