There has been a significant drop in confidence in Tether and stablecoins since the fall of Terra. Participants in crypto have increased concerns about stablecoin stability. Although many have increased their caution about certain projects, others are taking a total back-out.
That’s why the pressure has risen on some of the top stablecoins. Investors are demanding greater transparency about the reserves backing them. Tether USDT has become the dominant stablecoin, and many people have asked for more transparency about its reserves.
Tether recently revealed details about its reverse to the general public in a new development. Tether revealed the details of its reverse on Friday as part of the collaboration announcement with BDO Italia (a public accounting firm). Tether’s backing firm stated that it had $66.4 billion of reserves.
It also mentioned it had reduced its backing which consisted of holdings of commercial paper. The company stated at the moment that they are maintaining more cash and bank deposit, which had increased by 32% in the last quarter.
It cited the company’s plan to eliminate commercial paper as part of its reserves. The stablecoin had reduced the company’s holdings of commercial paper by more than 58% in the quarter just ended. Tether also mentioned it will provide daily updates on issued tokens, and reserve information.
It also plans to release assurance opinions every month. Tether stated its confidence in its ability to operate and the prudent management of its reserves.
The Tether Value of Total Assets Decreases
According to the report from BDO for the end of June, Tether’s assets are worth about $66.4 billion. The stablecoin’s assets were worth approximately $66.4 billion in the last quarter. This indicates a decrease of $16 billion. According to the quarterly report, Tether has $66.22 billion of total liabilities. However, most of these are related to digital token issuance.
Tether stressed that it’s report shows its resilience and ability to weather other storms. Also, it’s a measure of its commitment to transparency to its users and the general public.
Furthermore, it stated that transparency would be its main value. The firm revealed that it plans to publish data every month to encourage more openness.
It is an update to its previous practice of publishing a quarterly report on its standing and operations. USDT announced its partnership with a new accounting firm.
Featured image taken from Pixabay. Chart from TradingView.com