Instant Updates on Reserve Data
It’s about time! Tether Holdings, the brains behind the world’s heavyweight stablecoin Tether (USDT), is ambitiously looking to change how it shares reserve data. Starting in 2024, Tether plans to publish its reserve data in real time, a move that could shift transparency up a notch in the crypto game. But before you jump for joy, it’s important to note that according to Tether, there’s no “hard-and-fast deadline” to pull this off, meaning they might need a bit more time to get it right.
What’s Cooking at Tether?
Paolo Ardoino, Tether’s chief technical officer—and soon-to-be CEO—recently rolled out this exciting news following an article from Bloomberg. With Tether currently releasing reserve data at least once a day and issuing monthly reserve reports, the introduction of instant updates could have users dancing in the streets. But, will Tether actually pull it off? Only time will tell.
Tether In 2023: A Roller Coaster Ride
Despite some ups and downs in the cryptocurrency markets this year, Tether seems to be on a wild ride towards success. According to Tether’s Q2 update, the company’s assets grew by a healthy 5.7%, reaching a whopping $86.5 billion! It’s like they found a secret potion for operational profit, making more than $1 billion, a 30% leap from the previous quarter.
Stablecoin Lending: Taking a Turn
Tether’s stablecoin lending has also seen an interesting revival in 2023. This is surprising, considering the firm had initially scaled down its loans to zero in December 2022. The tide appears to have turned, yet again reflecting the unpredictable nature of the crypto space. Who says you can’t bounce back?
Spotlight on Excess Reserves
According to an attestation from accounting firm BDO, Tether has upped its excess reserves by $850 million. This brings their total excess reserves to a cool $3.3 billion. Not too shabby! Plus, they’re sitting on $72 billion worth of indirect exposure to U.S. Treasuries through money market funds, along with U.S. Treasuries backing their overnight repo. Safe and sound—that’s the name of the game.
Final Thoughts
With Tether aiming for real-time reserve data publication and showing robust growth despite a rocky year for crypto, it’s clear they’re trying to step up their game. Whether or not they can achieve their goals in a timely manner remains to be seen, but one thing is certain: the world is watching.
