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  • Tether Holdings Ltd.,Tether stock, issuer of the biggest stablecoin USDT (+0.03%), has prepared a new certification report about releasing more details than ever before on the combination of its $62.8 billion of reserves. Nearly 93% of Tether’s commercial paper and certificates of deposit holdings has the rate of A-2 and above, as 1.5% has the rate below A-3.

    Of this kind of information was what investors wanted for so long. In March, the firm published its first attestation report, which showed the amount of its assets and liabilities. In May, Tether published a breakdown of its reserves, indicating that about 50% of its reserves was held in commercial paper. However, that breakdown report was not “attested” to.

    Tethe’s Reserves

    In the latest attestation report, Tether not only included the composition of its reserves, but also provided a breakdown of the ratings and maturity of its commercial paper (CP) and certificates of deposit (CDs).

    Based on the report dated June 30, $30.8 billion, or 49% of Tether’s reserves, held in CP and CDs, out of which nearly 93% rated A-2 and above and 1.5% below A-3. Tether’s executives mentioned earlier to CNBC that the commercial paper it held rated “overwhelmingly rated A-2 or better.”

    Tether’s Assets and Tether’s liabilities

    Tether had $62.8 billion assets in total as of June 30, up from $41 billion on March 31, when its last attestation report dated. Tether has a moving around supply of $62.7 billion as of Monday, based on CoinGecko data.

    Other reserves contained $6.28 billion cash and bank deposits, or 10% of the total, $1 billion in reverse repo notes (1.6%) and $15.28 billion of U.S. Treasury bills (24.3%), according to the attestation. In the May breakdown, Tether reported that commercial paper reported for about 50% of its reserves, fiduciary deposits 18%, cash 2.9%, reverse repo notes 2.7% and Treasury bills 2.2%.

    Tether company’s loan

    The firm also held $2.52 billion safe loans and $4.83 billion corporate bonds, funds and precious metals, too. Which declared for 4% and 7.7% of its reserves, respectively. Tether mentioned in the report that its secured loans were “none to affiliated entities.”. Tether’s “other investments” containing digital tokens were $2.05 billion, or 3.3%, of the reserves.

    Based on the May breakdown, about 13% of Tether’s reserves was in safe loans. While 10% was in corporate bonds and precious metals. Some 1.6% was in “other investments (containing digital tokens).”

    ​​As of June 30, Tether was the defendant in four ongoing legal cases, “. The outcomes of which cannot yet be reasonably reliably estimated by management,”. Based on what the report said.

    “Any contingent liability in respect of these proceedings has not been accrued,”. That report said.

    Breakdown of commercial paper and certificates of deposit

    Nearly $149.8 million, or 0.5% of Tether’s CP and CDs, has the rate above A-1. About $14.5 billion. Or 47% of total CP and CDs, has the rate A-1. The firm’s holdings that rated A-2 and A-3 were $14 billion and $1.7 billion, respectively, taking up 45% and 5.5% of the total CP and CDs allocation.

    Around $459.3 million, or 1.5% of the CP and CDs, rated under A-3, based on the report. The ratings referred to short-term credit ratings by Standard & Poor’s, when available, Tether said. If not, “publicly available industry standard conversion tables have been used to convert ratings from Moody’s or Fitch to the S&P equivalent,”. Based the report.

    Around $10.6 billion, or 34% of its CP and CDs, had maturities of three months or less. Roughly $6.5 billion, or 21% of its CP and CDs, will mature in more than three months and fewer than six months. And also, and $13.7 billion, or 45%, had maturities of more than six months and less than a year.

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