After announcing it joined hands with public accounting firm BDO Italia, Tether had on Friday released details on its reserves. The company that backs the stablecoin said it had reserves amounting to $66.4 billion. The firm reported reduced dependency on commercial paper holdings as compared to last quarter figures. Tether said it increased its holdings of cash and bank deposits by 32%.
Tether Reserves Down By $16 Billion In Q2
As per the auditor report from BDO, Tether had assets worth $66.4 billion by June end. This is compared with the $82.4 billion in assets reported in the previous quarter. Tether’s consolidated total liabilities amount to $66.22 billion, a majority of which is in issuance of digital tokens. The company said the report demonstrates its resiliency and continued commitment to transparency.
Tether revealed its plans to remove commercial papers from reserves. The company said there was decrease of a more than 58% in Tether’s commercial paper holdings over the last quarter. In the new accounting process, the company would provide updates on issued tokens and reserves on a daily basis. Also, Tether would also provide monthly assurance opinions. The company said it demonstrated the solidity of its business and of its management of the reserves. The reserves fully covered the issued token, it added. Paolo Ardoino, CTO of Tether, said,
“We are fully committed to maintaining our role as the leading stablecoin in the market. The utility of Tether continues to be supported by the transparency of its reserves and has been a leading source of stability allowing us to build a tool for the global economy. Our commitment to transparency and the community is a long-standing pillar in the underlying ethos of the company and aligns with our responsibility as a market leader.”
Transparency In Accounting Practices
In a shift from its previous practice of reporting audit quarterly, the company said it would release data monthly. On Thursday, Tether said it was officially working with the new accounting firm. It stressed on providing transparency and accountability in disclosing the assets data.