Tether attestation shows cash and cash equivalents of 86% as loans decline

The reserves for stablecoin issuer Tether contained approximately 86% cash and cash equivalents as of September 30, according to a new attestation report from accounting firm BDO. This is the highest percentage of cash and cash equivalents that have ever made up Tether’s reserves.

According to the report, $56.6 billion worth of reserves are in U.S. Treasury bills with a maturity date of less than 90 days. Meanwhile, another $8.8 billion was held in reverse repurchase agreements involving these bills. There was $8.2 billion in U.S. Money Market funds pegged to $1 per note and $292 million in cash and bank deposits. Another $65 million is held in the form of treasury bills from countries other than the U.S.. The total amount of cash and cash equivalents is approximately $74 billion, which is 85.73% of Tether’s total reserves of $86.4 billion.

The report also shows that Tether has reduced its reliance on secured loans as a means of raising revenue. Secured loans now make up only $5.1 billion worth of USDT reserves, which is approximately $336 million less than what the previous report showed. Tether was criticized in September for continuing to make secured loans after previously stating that it would wind these down.

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In an accompanying blog post, Tether forecast a further reduction in loans by the close of day on October 31. An additional $1.1 billion in loans will be wound down by this date, at which point only $900 million in loans will remain as part of reserves.

BDO publishes attestations of Tether’s reserves every quarter, with a one-month lag between the end of the quarter and the publication of the report. Tether claims that it is working on a system to provide real-time audit reports in 2024.

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