Tether’s Reserves Fall by $16bn in Q2
Stablecoin Tether’s reserves were worth $66 billion at the end of June 2022, down from $82.4 billion at the end of March, the company said in a statement on Friday.
It is noted that Tether’s holdings of U.S. Treasury bills fell to $28.9 billion in the second quarter, the statement by accountant BDO Italia said, compared to $39.2 billion in the first quarter.
Also, the company’s commercial paper and certificates of deposit holdings were down to $8.4 billion from $20.1 billion.
Stablecoins are a type of cryptocurrency designed to keep constant value, such as a 1:1 U.S. dollar peg. They are widely used in cryptocurrency trading to move funds between different cryptocurrencies or into regular cash.
Financial regulators worldwide have warned that stablecoins could pose a risk to wider financial stability, with Britain among major economies looking to regulate the sector. READ: Stablecoins Grow 15% to $187 Billion in 3-Month
Tether says its coin maintains its value by holding dollar-denominated reserves to match or exceed the value of Tether coins in circulation. Tether’s $66.4 billion reserve assets exceed its $66.2 billion liabilities, BDO Italia said in the statement.
Holdings of U.S. Treasury bills fell to $28.9 billion in the second quarter, the statement said, a $10.3 billion drop from the $39.2 billion it held in the first quarter.
Commercial paper and certificates of deposit were down to $8.4 billion, showing an $11.7 billion drop. In July, Tether said that it had slashed its commercial paper holdings as part of a plan to reduce exposure to riskier assets.
Tether CTO Paolo Ardoino also said that the company will have cut its commercial paper holdings to $200 million by the end of August, and to zero by the end of October. #Tether’s Reserves Fall by $16bn in Q2