Stablecoin operator Tether Holdings withdrew more than $4.5 billion from the bank in the first quarter of 2023, leading to a “significant reduction” in peer risk, the company reported in a post announcing new evidence it is from BDO Italia.
It is connected USDT ($1.00) market capitalization fell from $66 billion to more than $82 billion in the first quarter, while Tether lost more than 90% of its bank deposits, reducing it from $5.3 billion to $481 million. Tether said that the remaining bank deposits are spread across different banks, referring to its competitors who suffered losses after the recent bank failure.
At the same time, Tether boosted its US assets to a new high of more than $53 billion, or 64% of its reserves. Combined with other assets, Tether’s USDT token is currently backed by 85% cash, equity, and short-term deposits “that can be quickly sold to arrange redemptions.” This includes more than $7.5 billion in repo assets. Besides:
Tether revealed its gold and bitcoin BTC $26,686 and 15 minutes of the first testimony in the demonstration of his commitment to understanding, he said. He pointed to his financial growth in the quarter of other companies, citing BlackRock, Netflix, Starbucks, Cash App and PayPal as the companies he is making money from.
Tether has been working for months to improve its financial performance and is eager to show its progress. It announced in June that it would cut its commercial and securities portfolio from $20 billion to $8.4 billion by the end of the month and to zero by the end of the year. He successfully achieved this goal. Tether, which is owned by Hong Kong-based iFinex, has denied negative reviews and allegations about its financial position.
There are rumors that Tether has a large amount of money in Chinese trading books when the Chinese giant Evergrande Group has financial problems. The New York Attorney General’s Office fined Tether $18.5 million in 2021 for misrepresenting fiat support for its securities. The rules also require greater financial disclosure from the stablecoin issuer. This month, John Reed Stark, the former head of the US Securities and Exchange Commission’s internet enforcement office, called Tether a “mammoth house of cards” and the extent to which it “changes the thinking of the country and the country” with its chief technology officer. Tether, Paolo Ardoino on Twitter.
Stark pointed out that Tether had promised to provide a full-fledged research service in “months, not years” in 2021, which has not yet happened. Certificates, such as the one published this quarter, are often more focused and do not provide an external perspective on the financial health of the company.
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