Stablecoin issuer Tether reveals strong financial position with excess reserves and market dominance, while aiming to eliminate secured loans by 2023.
Stablecoin issuer Tether has reported a significant increase in its reserves, with $3.2 billion in excess reserves backing its stablecoins. This information was revealed in the company's Q3 attestation, which also highlighted a total of $86.4 billion in assets. These assets include exposure to US Treasuries and secured loans.
Tether has made progress in reducing its secured loans, with a decrease of $330 million reported. However, the company still has a long way to go to fulfill its promise of reducing loans to zero by 2023. Despite this, Tether's USDT stablecoin maintains a strong market capitalization of $84 billion, and the company has seen profitable returns on its holdings.
In addition to these financial updates, Tether has announced the promotion of Paolo Ardoino to CEO. Ardoino has plans to introduce real-time data about reserves in the future, a move that could increase transparency and trust in the company.
Tether's Q3 attestation report also revealed the highest ever percentage of cash and cash equivalents in the company's reserves. Cash and cash equivalents accounted for 85.7% of its total reserves, with a majority of those reserves being U.S. T-Bills. In addition to this, Tether holds $1.7 billion worth of bitcoin and $3.1 billion worth of gold.
Tether's USDT stablecoin continues to dominate the stablecoin market, accounting for 68.4% of the total stablecoin supply. With excess reserves of $3.2 billion and a total of $83.2 billion worth of Tether tokens outstanding, the company's financial position appears strong.
In conclusion, Tether's latest financial reports indicate a strong position, with significant reserves and a dominant position in the stablecoin market. However, the company's commitment to reducing secured loans to zero by 2023 will be a key area to watch in the coming years.