With Tether’ Show of $82 Billion Reserves, Has Your Confidence in The USDT Stablecoin Risen?

USDT had always been perceived as the pillar in the stablecoin segment of cryptocurrencies, but with the recent crash of UST just a couple of days ago, real concerns have emerged over the true stability of the USDT token itself… with escalating global calls for a comprehensive audit of Tether’ USDT reserves. Alongside the crash of the UST stablecoin also came memories of the high proportion of commercial papers in the reserves of Tether as published by Tether Holdings in December 2021… knowing that commercial papers have the frailty of not having good liquidity especially during financial crises. To dispel these fears and worry, Tether has finally released a report of it consolidated reserves which is reported here:

The report shows a 17% quarter-over-quarter decline in its commercial paper holdings from $24.2 billion to $19.9 billion. Independent accountants, MHA Cayman also attested that Tether holds a consolidated total asset which is worth at least $82 billion and that Tether’ reserves against every issued USDT exceeds the amount required to redeem them. Like all cryptocurrencies which are built on one blockchain network or the other such as BNBchain, Zetrix, Solana etc, USDT is a stablecoin built on the Ethereum network, and Paolo Ardoino, Tether’s CTO has come out to allay all fears by saying that Tether is fully funded.