Tether, the world’s largest stablecoin by market cap, said on Friday that it had reserves of $66.4 billion (about Rs 5,30,700 crore) at the end of June, up from $82.4 billion (about Rs 6,58,600 crore) at the end of June. Rs.) was of March. The reserve statement on Tether’s website comes a day after it said it had switched to accountancy firm BDO Italia to validate its reserves and would aim to release monthly reports by the end of the year.
Stablecoins are a type of cryptocurrency designed to maintain a constant value, such as a 1:1 peg to the US dollar. They are widely used in cryptocurrency trading to transfer money between different cryptocurrencies or in regular cash.
Financial regulators around the world have warned that stablecoins could pose risks to broader financial stability, with the UK among major economies looking to regulate the sector.
Tether says its coin maintains its value by holding dollar-denominated reserves to match or exceed the value of the Tether coins in circulation.
BDO Italia said in a statement that Tether’s reserve assets of $66.4 billion (approximately Rs 5,30,700 crore) exceeded its liabilities of $66.2 billion (approximately Rs 5,29,100 crore).
In June, Tether’s chief technology officer Paolo Ardoino said Tweet That Tether had processed $16 billion (approximately Rs 1,27,876 crore) in redemptions. A widespread crypto market downturn had prompted investors to swap their Tether holdings back into dollars.
Joseph Edwards, investment partner at Securitize Capital, said, “The report itself looks positive for Tether, as it reinforces that perhaps no bank is big enough to run them into parts of their treasury that would may be suspicious.”
“The questionable part of the report is reshuffling auditors, especially given that it has no current presence in English-language markets,” Edwards said. “They are within their rights to do so, but it will do little to silence critics.”
Tether did not provide any further comment. Its website shows that it has published vouching reports for its reserves from at least five other firms since 2017.
The company’s holding in US Treasury bills fell to $28.9 billion (about Rs 2,31,000 crore) in the second quarter, the statement said, from $39.2 billion (about Rs 3) to $10.3 billion (about Rs 82,300 crore), the statement said. is less. 13,300 crore) it held in the first quarter.
Commercial papers and certificates of deposit declined to $8.4 billion (about Rs 67,100 crore), showing a decline of $11.7 billion (about Rs 93,500 crore).
In July, Tether said it had reduced its commercial paper holdings as part of a plan to hedge its exposure to riskier assets.
Ardoino also said the company would reduce its commercial paper holdings to $200 million (about Rs 1,600 crore) by the end of August, and to zero by the end of October.
© Thomson Reuters 2022