Tether’s recent transparency report affirms its strong financial standing with a $3.3 billion liquidity cushion. While major blockchains show pre-authorization for issuance, concerns about Tether’s liquidity seem unfounded based on these revelations.
Tether’s Robust Financial Ecosystem
Tether, the renowned stablecoin issuer, stands strong with an almost $3.3 billion liquidity cushion, ensuring its stability and building trust amongst shareholders.
As of August 24, Tether’s reserves report flaunts a shareholder capital cushion totalling $3.29 billion, dispersed across 15 blockchain ecosystems. Among these, barring Algorand and Polygon, Tether holds the prerogative to issue a considerable amount of USDT tokens.
Leaders in Pre-Authorized Issuance
Solana leads the brigade in value pre-authorized for issuance with a staggering $1.57 billion. Ethereum and Tron are not far behind, bagging the subsequent spots with $617 million and $353 million pre-authorizations respectively.
Yet, Tether’s perspective on the significance of issuance preauthorization in enhancing transparency remains a mystery.
Assets and Liabilities: Over 100% Backing
Tether boasts assets amounting to $86.1 billion, with liabilities equating to $82.8 billion. This corroborates a reserve backing that exceeds 100%.
However, the liquidity privilege is not a universal feature for all of Tether’s stablecoins. The report highlights that XAUT, EURT, MXNT, and CNHT, other non-USD Tether stablecoins, lack a comparable liquidity cushion like USDT.
Past Concerns vs Present Facts
While October 2021 saw Tether facing a $41 million penalty by the Commodity Futures Trading Commission over misleading reserve statements, the recent reports over the last two years have steered clear of regulatory objections.
Changes in Tether’s Token Landscape
Tether’s Bitcoin variant of USDT, dubbed as Bitcoin OmniLayer, recently bid adieu. Future issuances on the Bitcoin Omni Layer, Kusama, and Bitcoin Cash have been halted, though redemptions are promised for the next year post-announcement.
The OmniLayer team faced obstacles due to the scantiness of popular tokens and USDT’s prevalence on other blockchains. Tether, however, leaves a door ajar, expressing a potential comeback for the Omni Layer version, contingent on its revitalized usage.
