86% Of Tether Reserves Held In Cash And Equivalents: Report

Key Points:

• Around 86% of Tether reserves held in cash and cash equivalents in Q3, mainly in US Treasury Bills.
• The company’s total secured loans reduced to $2 billion in September, and are expected to further decrease to $900 million by the end of October.
• Tether invested over $800 million in Bitcoin mining and other industry-related research this year, but these investments aren’t part of the reserves backing the issued token.

BBG reported 86% of Tether reserves in Q3 were in cash, primarily US T-Bills. The firm also reduced secured loans and increased excess reserves.

These cash and cash equivalents are largely comprised of US Treasury Bills (T-Bills), which account for $72.6 billion of the Tether reserves. This forms a significant proportion of Tether’s total assets, which stand at a minimum of $86.4 billion, compared against its liabilities of $83.2 billion. These figures have been confirmed by a third-party attestation for the third quarter conducted by BDO.

In addition to its cash reserves, Tether’s total amount of secured loans amounted to $2 billion as of the end of September, which represents a substantial reduction from over $330 million. The company also forecasts that the remaining secured loans will decrease to $900 million as part of the stablecoin’s reserves by the end of October.

Tether’s Excess Reserves and External Investments

The stablecoin issuer also revealed that it had accumulated $3.2 billion in excess reserves as of September 30, which it expects to increase to $4.2 billion by the end of October. This is an increase from the total excess reserves of about $3.3 billion at the end of the second quarter.

Investments made by Tether in industry-related research fields such as Bitcoin mining have also been disclosed. The company has invested over $800 million since the start of the year, including almost $670 million in the third quarter alone. However, these investments are not included as part of the reserves backing the issued token.

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