Tether says its reserves in cash, equivalents are at the highest ever

TETHER Holdings said that almost 86 per cent of its reserves were held in cash and cash equivalents in the third quarter, the highest percentage ever for the operator of the largest stablecoin.

The vast majority of Tether’s reserves held in cash and cash equivalents are US T-Bills, accounting for US$72.6 billion. Tether’s total asset was at least US$86.4 billion against its liabilities of US$83.2 billion, according to a third-party attestation for the third quarter by BDO on Tuesday (Oct 31).

The total amount of secured loans stood at US$2 billion as at Sep 30 as part of the stablecoin’s reserves, the report said. The company saw a significant reduction in secured loans with over US$330 million and the company forecast the remaining secured loans will be US$900 million as part of the stablecoin’s reserves by Oct 31.

The stablecoin issuer accrued US$3.2 billion in excess reserves as at Sep 30 and expected that to rise to US$4.2 billion by Oct 31. Total excess reserves were about US$3.3 billion at the end of the second quarter, the company previously said.

Tether also disclosed the investments made in industry-related research fields such as Bitcoin mining for a total amount of over US$800 million since the beginning of the year, including almost US$670 million this quarter. These investments are not considered part of the reserves backing the issued token, the company said.

“The excess reserves buffer remained stable despite market volatility, a showcase of remarkable resilience in the face of fluctuating gold and Bitcoin prices, valued at fair value as indicated in the CRR, resulting in a reduction of US$116 million for gold inventory and US$195 million for BTC positions at the end of the third quarter,” the company said in the report. BLOOMBERG