Tether’s newest reserve attestation consisted of approximately 86% cash and cash equivalents, according to a new attestation report from accounting firm BDO. This is the highest proportion of cash and cash equivalents that Tether’s reserves have ever contained.
The report indicates that $56.6 billion in reserves consist of U.S. Treasury notes with a maturity date of less than 90 days. Meanwhile, reverse repurchase agreements involving these bills held an additional $8.8 billion.
There were $8.2 billion in $1 per note-valued U.S. Money Market funds and $292 million in cash and bank deposits. The company holds an additional $65 million in foreign treasury notes. The total cash and cash equivalents is approximately $74 billion, representing 85.73 percent of Tether’s total reserves.
The report also indicates that Tether has decreased its reliance on secured loans as a revenue source. Secured loans now account for only $ 5.1 billion in USDT reserves, approximately $336 million less than the previous report indicated. In September, Tether was criticized for continuing to make secured loans despite having previously stated that it would cease doing so.
In an accompanying blog post, Tether predicted a further loan decrease by October 31’s end of the day. By this date, an additional $1.1 billion in loans will have been repaid, leaving only $900 million in loans as part of the reserves.
BDO publishes quarterly attestations of Tether’s reserves, with a one-month lapse between the end of the quarter and the report’s release. Tether is developing a system that will provide real-time audit reports by 2024.
