Tether Holdings Limited’s Q3 2023 Assurance Report: A Testament to Stability and Transparency
In a remarkable display of transparency and commitment to financial stability, Tether Holdings Limited has released its Q3 2023 Assurance Opinion, completed by BDO, a globally recognized independent public accounting firm. This report provides a detailed breakdown of Tether’s Consolidated Reserves as of September 30, 2023, reaffirming the accuracy and reliability of their financial disclosures.
Tether’s Consolidated Reserves Report Highlights
Record-High Cash and Cash Equivalents: One of the most striking revelations in Tether’s Q3 report is the highest percentage of reserves held in Cash and Cash Equivalents (C&Ceq) ever recorded at an impressive 85.7%. This milestone demonstrates Tether’s unwavering commitment to maintaining liquidity and ensuring stability within the stablecoin ecosystem. A significant majority of these C&Ceq reserves, approximately US$ 72.6 billion, consist of US Treasury Bills (T-Bills), showcasing both direct and indirect exposure to these secure assets.
Reduction in Secured Loans: Tether has taken steps to bolster investor confidence by significantly reducing the amount of secured loans extended, amounting to over $330 million. This move underscores Tether’s dedication to financial prudence, transparency, and accountability in the cryptocurrency space.
Robust Financial Performance: Tether’s transparency extends to its financial performance, with quarterly returns from Cash and Cash Equivalent investments nearing an impressive US$1 billion. This achievement underscores the company’s robust risk management strategies, demonstrating its ability to weather market volatility and deliver consistent financial results.
Diverse Investments: Tether has also invested over $800 million in industry-related research fields since the beginning of the year, with nearly US$670 million allocated in the third quarter alone. Notably, these investments are not considered part of the reserves backing the issued token.
Resilience in the Face of Volatility: Tether’s excess reserves buffer remained stable despite market volatility, including fluctuations in Gold and Bitcoin prices. The report indicates a reduction of US$116 million for gold inventory and US$195 million for BTC positions at the end of Q3 2023. However, the substantial price increases observed in October offset these fluctuations, contributing to an overall strengthening of Tether’s financial position.
The independent attestation by BDO confirms that Tether’s consolidated assets once again exceed its consolidated liabilities. As of September 30, 2023, Tether’s consolidated total assets stand at a minimum of US$ 86,384,653,832, while consolidated total liabilities amount to US$ 83,176,997,409. A vast majority of these liabilities, US$ 83,153,363,663, are related to digital tokens issued. This reaffirms Tether’s strong financial position and ability to meet its obligations.
Investments Beyond Token Reserves
Tether’s commitment to financial transparency extends to its investments beyond token reserves. During Q3 2023, the company invested significantly in sustainable energy, Bitcoin mining, data, and P2P technology, totaling US$668,891,473. Since the beginning of the year, these investments amount to US$809,491,473. These investments align with Tether’s vision of building a more sustainable and inclusive financial future for all.
A Path to Reducing Secured Loans
Tether’s long-term goal is to reduce and eventually eliminate the exposure of secured loans from its reserves by leveraging excess reserves and undistributed profits. This strategy is clearly depicted in the financial charts provided in the report. As of September 30, 2023, Tether had accrued US$3.2 billion in excess reserves, leaving only US$2 billion in secured loans as part of USD₮ reserves. The forecast for October 31, 2023, suggests that Tether will hold US$4.2 billion in excess reserves, reducing secured loans to just US$0.9 billion.
In the words of Paolo Ardoino, CEO of Tether, “Tether’s Q3 attestation is a testament to our unwavering commitment to transparency, stability, and responsible financial management. We’ve achieved the highest ever percentage of our reserves held in Cash and Cash Equivalents, signaling our dedication to maintaining liquidity and stability within the stablecoin ecosystem.”
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