Last Updated: August 27, 2023
• Tether released a transparency report which highlights its $3.29 billion liquidity cushion.
• The report was created to provide transparency and assurance regarding the stability of Tether’s platform.
• The report also outlines various measures taken by the company to ensure customer trust, including comprehensive audits and strong security protocols.
Tether Releases Transparency Report
Tether has released a transparency report that provides insight into its financial health and stability, highlighting its $3.29 billion liquidity cushion. This comes in response to rising concerns about the company’s ability to back up its stablecoin with real-world currency reserves.
Report Aims To Provide Transparency
The report was created to provide additional transparency and assurance regarding the stability of Tether’s platform, as well as outlining various measures taken by the company to ensure customer trust including comprehensive audits and strong security protocols.
Liquidity Cushion Remains Robust
The report reveals that Tether’s liquidity cushion remains robust despite recent market volatility, with total assets held in reserve exceeding liabilities by almost 3 times—$3.29 billion compared to $1.14 billion respectively. Moreover, the ratio of cash and cash equivalents held in reserve relative to USDT issued is higher than it has ever been at 76%.
Comprehensive Audits Carried Out
In addition, comprehensive audits have been carried out on an ongoing basis since June 2018 for all major currencies supported by Tether, including USDT (United States Dollars), EURT (Euros) and GBPT (Great Britain Pounds). These audits are designed to ensure that all reserves are backed up one-to-one with their respective fiat currency equivalent at all times as per Tether’s published terms of service agreement.
Strong Security Protocols In Place
Furthermore, strong security protocols have been implemented across all operations within the company including regular reviews of codebases and processes employed for storage of fiat currencies as well as digital assets such as Bitcoin or Ethereum tokens held in reserve by Tether Limited itself or any related entities or partners acting on behalf of the company worldwide.