Tether Holdings Limited has released its Q3 2023 assurance opinion, conducted by the prominent BDO public accounting firm. The report provides a comprehensive breakdown of Tether’s consolidated reserves and assets as of September 30. The company’s Consolidated Reserves Report (CRR) showcases a significant milestone in the stablecoin ecosystem, with an all-time high of 85.7% of its reserves held in Cash and Cash Equivalents (C&Ceq).
Tether’s Strong Q3 Assurance
Most of these funds are invested in US T-Bills, amounting to a substantial $ 72.6 billion, encompassing direct and indirect exposure. Furthermore, the report highlights a substantial reduction in secured loans extended by Tether, totaling over $330 million.
Its dedication to transparency is evident in its disclosure of quarterly returns from Cash and Cash Equivalent investments, which have once again approached the $1 billion mark, per the report.
Additionally, the company invested over $800 million in industry-related research fields, with nearly $670 million in Q3 alone. These investments are separate from the reserves supporting the issued tokens.
Despite market volatility, Tether’s excess reserves buffer remained stable. Fluctuations in Gold and Bitcoin prices resulted in a reduction of $116 million for gold inventory and $195 million for BTC positions by the end of Q3 2023.
However, October’s price increases offset these losses, strengthening the company’s financial position and emphasizing its commitment to a secure and dependable stablecoin ecosystem.
The BDO independent attestation confirms that its consolidated assets again surpass its consolidated liabilities. As of September 30, the company’s consolidated total assets exceeded $ 86.3 billion, while consolidated total liabilities amounted to $83.2 billion, primarily due to digital tokens issued.
Notably, Tether’s investments in sustainable energy, Bitcoin mining, data, and P2P technology, totaling over $668 million in Q3 and $809 million since the start of the year, do not form part of the reserves backing the issued tokens. Tether’s management reaffirms its commitment to reducing and eventually eliminating secured loans from the reserves, using excess reserves and undistributed profits.
Nevertheless, as of the end of Q3, Tether had accrued $3.2 billion in excess reserves, with only $2 billion in secured loans as part of USDT reserves. A forecast indicates that by October 31, it will hold $4.2 billion in excess reserves, reducing secured loans to just $0.9 billion.
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