Tether has provided many assurance opinions in a recent article outlining the reserve’s composition in detail. US dollar reserves are held in cash or other widely accepted forms of money. Tether has never failed to fulfil any redemption requests from its verified consumers.
Tether just completed the redemption of over $10 billion worth of redemption requests utilising the collateral that fully backs USDT. Tether now has over $70 billion worth of collateral that it can use to redeem USDT.
Tether, on the other hand, is determined to decrease its holdings of commercial paper and increase its holdings of US Treasury bonds.
US Treasuries presently comprise more than 55% of Tether’s total USD reserves, while commercial paper accounts for less than 29% of Tether’s USD backing.
Both commercial paper and treasury reserves are part of Tether’s reserves; however, treasury reserves now make up a far bigger percentage of Tether’s reserves than commercial paper.
Tether’s dedication to openness and consistency is shown by these statements. Tether is well-capitalized, prudent, and well-liquidated. The fact that Tether was able to meet redemption requests totaling $10 billion in a couple of days further supports this claim.
