{"id":2327,"date":"2023-05-11T00:14:04","date_gmt":"2023-05-10T22:14:04","guid":{"rendered":"https:\/\/www.dhcab.com\/?p=2327"},"modified":"2023-05-11T00:14:06","modified_gmt":"2023-05-10T22:14:06","slug":"tether-boosts-t-bill-holdings-cuts-banks-exposure","status":"publish","type":"post","link":"https:\/\/www.dhcab.com\/?p=2327","title":{"rendered":"Tether Boosts T-Bill Holdings, Cuts Banks Exposure"},"content":{"rendered":"\n<ul class=\"wp-block-list\">\n<li>Circulation of Tether\u2019s USDT has jumped in recent months<\/li>\n\n\n\n<li>Tether held 85% of reserves in cash and equivalents March 31<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>By Emily Nicolle and Alberto Brambilla<\/p>\n\n\n\n<p>May 10, 2023 at 7:02 PM GMT+4<em>Corrected<time datetime=\"2023-05-10T20:49:01.715Z\">May 11, 2023 at 12:49 AM GMT+4<\/time><\/em><\/p>\n\n\n\n<p>Tether Holdings Ltd., the operator of the largest stablecoin, increased its holdings of US Treasury bills to $53 billion while simultaneously cutting its exposure to cash in the first quarter, following a slate of US bank closures that impacted rivals.<\/p>\n\n\n\n<p>A third-party\u00a0attestation\u00a0of the $81.8 billion reserves backing its USDT token as of March 31 showed that around 85%, or $69.3 billion, of the collateral supporting USDT was stored in cash and cash-equivalents. Stablecoins are digital tokens that aim to keep a one-to-one value with a less volatile asset like the dollar, typically by maintaining large reserves as segregated collateral.<\/p>\n\n\n\n<p>The filing, published Wednesday by accounting firm BDO Italia, said more than three-quarters of Tether\u2019s cash-equivalents were stored in short-dated Treasuries, a popular asset among stablecoin issuers and cryptocurrency companies seeking to gain from the rise in yields from traditional financial markets such as bonds. That marked a slight uptick from its holdings in the\u00a0previous quarter, when such assets made up around 71% of Tether\u2019s cash reserves. At the current rate of 5.23% for three-month bills, Tether would net around $2.8 billion in earnings from such holdings.<\/p>\n\n\n\n<p>Third-party attestations are not the same as financial audits, as they are limited to a snapshot in time and do not allow full access to a company\u2019s books. The quality of assets backing stablecoins like USDT has come under intense scrutiny in recent years, as regulators\u00a0grew concerned\u00a0about the liquidity of operators\u2019 reserves and if they could withstand mass redemption requests while under market pressure.<\/p>\n\n\n\n<p>\u201cOur main goal is that we show that we have the money, plus that the majority of what we are making in profits, we\u2019re keeping in the company,\u201d Paolo Ardoino, Tether\u2019s chief technology officer, said in an interview on Wednesday.&nbsp;<\/p>\n\n\n\n<p>The stablecoin USDT has experienced a boom in demand in recent months as its closest rival,\u00a0Circle Internet Financial Ltd.\u2019s USDC, weathered a series of hits from its exposure to the collapses of Silvergate Capital, Signature Bank and Silicon Valley Bank. As a result, Tether is now\u00a0on the verge\u00a0of recovering all of the market value that it lost in the wake of the collapse of algorithmic stablecoin TerraUSD a year ago, with USDT\u2019s circulation hovering about $700 million below its $83.4 billion peak on Wednesday, according to pricing by data provider CoinGecko.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Emily Nicolle and Alberto Brambilla May 10, 2023 at 7:02 PM GMT+4CorrectedMay 11, 2023 at 12:49 AM GMT+4 Tether Holdings Ltd., the operator of the largest stablecoin, increased its holdings of US Treasury bills to $53 billion while simultaneously cutting its exposure to cash in the first quarter, following a slate of US bank [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2328,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-2327","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-issues"],"_links":{"self":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/posts\/2327","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2327"}],"version-history":[{"count":1,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/posts\/2327\/revisions"}],"predecessor-version":[{"id":2329,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/posts\/2327\/revisions\/2329"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/media\/2328"}],"wp:attachment":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2327"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2327"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2327"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}