Tether’s (USDT) $8.5 Billion Commerical Paper Holdings Validated By BDO Audit

Summary:

  • USDT stablecoin issuer Tether has released the latest report on its reserves.
  • The report was independently audited by BDO, a leading accounting firm ranked in the top five globally.
  • Friday’s audit revealed a further reduction in the company’s commercial paper availability in the last quarter.
  • According to the audit, cash holdings and bank deposits also increased.
  • Tether had previously announced plans to reduce commercial paper availability to zero by the end of 2022.
  • The digital assets company still holds about $ 8.5 billion in short-term debt as of press time.

Tether, the digital asset firm behind the cryptocurrency’s largest USDT stablecoin, released its independently verified quarterly insurance report on Friday from a top-notch public accounting firm called BDO.

The stablecoin issuer used BDO’s service as a means to further validate the previously published consolidated reserves report. In fact, the report focused on the assets held by the company at the end of the second quarter of 2022.

The BDO report confirms Tether’s report on its Stablecoin reserves

According to BDO’s assessment of Tether’s reserves, holdings of commercial paper fell by 58%. During the last quarter of 2022, the total amount of that holding in the company’s reserves dropped from $ 20 billion to $ 8.5 billion.

In particular, this is in line with CTO Paolo Ardoino’s previous rhetoric regarding plans to significantly reduce the short-term corporate debt held by the stablecoin issuer. Ardoino was quoted earlier in the year that the digital asset giant would reduce its commercial paper to zero by the end of 2022.

In the last quarter, the company also supported cash and bank deposits by around 32%, according to Friday’s audit report. Additionally, Friday’s audit reaffirmed the company’s reserve statements for assets held as of June 30, 2022.

  • The total consolidated assets of the Group amount to at least US $ 66,409,619,424.
  • The Group’s total consolidated liabilities amount to US $ 66,218,725,778, of which US $ 66,204,234,509 relating to issued digital tokens.
  • The consolidated assets of the Group exceed its consolidated liabilities.
  • The total gross consolidated contractual redemption value relating to all digital tokens issued, including those held by the Group, is US $ 66,430,393,253.
  • The consolidated amount relating to digital tokens held by the Group but not present in its treasury wallet is US $ 226,158,744.

As of press time, Tether’s USDT remains the leading stablecoin in the cryptocurrency industry with over $ 60 billion in market capitalization. Circle’s USDC is the closest competitor with a market cap in excess of $ 50 billion, according to data from CoinMarketCap.

Ardoino said the company plans to keep its place at the top while providing utility for the global digital economy.

Tether's (USDT) $ 8.5 billion in owned commercial cards validated by BDO 13 audit
USDT market cap (source: CoinMarketCap

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