Tether Holding Limited has published information about underlying Tether reserves, the stablecoin that is the undisputed queen of the cryptocurrency market pegged to the US dollar.
After the controversy, the lawsuits and the accusations of manipulation of the price of Bitcoin, the company is now betting on full transparency.
In the released document, it is possible to see two pie charts showing Tether's underlying reserves as of March 31, 2021.
They are broken down as follows:
- 75.85% cash, cash equivalents, short-term deposits and commercial paper;
- Loans guaranteed at 12.55%;
- 9.96% corporate bonds, funds and precious metals;
- 1.64% other investments (including digital tokens).
Most of it, 75.85% cash and equivalents, is divided as follows:
- 65.39% commercial paper;
- 24.20% trust deposits;
- 3.87% in cash;
- 3.6% of reverse repo notes;
- 2.94% treasury bills.
Stuart hoegner, General Counsel of Tether, explained:
“Today, Tether Holdings Limited made available information on the composition of its reserves that support the issued tether tokens. Tether proposed continued release of the reservation breakdown as part of our settlement agreement with the New York Attorney General's Office, and we committed to making that information available to both the Attorney General's office and the public. Today's post reflects our continued dedication to transparency and setting the standard in our industry. "
Tether reserves and market capitalization
The disclosure of reservations definitely demonstrates that Tether is "fully supported" and it is part of the agreements made with the New York Attorney General's Office to resolve the lawsuit that threatened the very existence of the USDT.
In any case, the market has always trusted Tether, the queen of stablecoins. Today it ranks fifth in market capitalization (according to CoinMarketCap), with a market capitalization that recently surpassed 50 billion and now stands at $ 57 billion.
To understand its dominance in the market, it is enough to know that the second stable coin in the ranking, USDC (14th in the CoinMarketCap ranking) has a capitalization of “only” $ 14 billion.
Probably the greater transparency that Tether is giving to your stablecoin will help further increase its adoption.
