In an interview with Bloomberg News published on Thursday, Paolo Ardoino, Chief Technology Officer (CTO) and future Chief Executive Officer (CEO) of Tether, revealed the company’s plan to launch real-time releases of reserve data starting in 2024. This strategic move aims to bolster transparency in the cryptocurrency markets and address concerns surrounding the stability of the widely-used USDT stablecoin, which has previously faced scrutiny regarding its reserves, media reports said.
Tether, having experienced significant growth over the past year, now holds a substantial share, accounting for nearly 70% of the total stablecoin market capitalization. Recognized as a systemically important entity in the crypto space, Tether has been under pressure to enhance transparency regarding its reserve holdings supporting USDT.
Presently, Tether discloses attestations of its reserves quarterly through an external accounting firm. The latest attestation reported an increase in Tether’s excess reserves to $3.3 billion, with holdings of $72 billion in US Treasuries. This allocation positions Tether as the 22nd largest holder of US debt, surpassing some countries, including the United Arab Emirates and Australia. Tether has notably shifted its collateral composition, reducing exposure to riskier assets like commercial paper in favor of being primarily backed by Treasuries.
The decision to transition to real-time data disclosures follows a $40 million settlement paid by Tether last year in response to regulatory allegations of providing false information about its reserves. By adopting frequent live data releases, Tether aims to rebuild trust within the crypto community and address the growing demand for increased transparency in the stablecoin market. The move signifies a commitment to transparency, aiming to reassure both investors and regulators about the stability and legitimacy of USDT.
