The biggest Stablecoin issuer company finally responded against the haters, to ensure no panic situation for the USDT coin.
Tether is a top-ranked stablecoin issuer company. This company operates its USDT Stablecoin, which remains pegged at a $1 value. Tether is getting adoption and high scale use advantage over other stablecoins issuer companies because of its first-mover step in the crypto industry. Tether was the first company, which launched Stablecoin. Tether is a subsidiary of the Bitfinex crypto exchange.
In the last 15 days, the Crypto industry saw the downfall of Terra’s UST stablecoin and Luna coin together because of panic and high sell pressure. Due to the very bad situation for third-ranked stablecoin UST, the majority of the crypto investors getting worried about using stablecoins for their trade. In this situation, Binance’s BUSD stablecoin and Circle’s USDC stable coin are getting better attention and support from the crypto space as safe options to choose a stable coin.
The majority of the experts raised questions on algorithm based stablecoins and also dragged USDT as a risky tool. USDT critics claimed that USDT is in a very high danger situation because of load of huge numbers of commercial papers.
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In response to these criticisms, USDT issuer Company Tether published its report regarding its reserve funds behind the USDT coin, on 19 May.
Through the report, Tether confirmed that the company is currently holding $82,424,821,101 worth of assets as a reserved fund to strongly back the USDT coin. The report also noted that the company continuously reduced commercial paper at a rate of 17% quarter by quarter.
According to 31 March reporting Data, the company standing at these four supportive facts, which are enough for the USDT users to remain tension free with their USDT holding & use.
- Consolidated total assets are at least $82,424,821,101
- The group’s consolidated assets exceed its consolidated liabilities
- The group’s reserves against issued digital tokens exceed the amount required to redeem them
- Consolidated assets show a significant decrease in average maturity with a focus on shorter-term assets
The report also confirmed that the company increased its investment in the money market and U.S. Treasury bills by 13%, from $34.5 billion to $39.2 billion.
Read also: SWIFT testing Crypto & CBDC supported payments interoperability
Tether spreading confidence with its 17% quarter-over-quarter decline in commercial paper
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