Tether Publishes First Audit Report with New Accounting Firm: $66.4B in Reserves

Tether Holdings, a group behind the Tether (USDT) stablecoin, published its first audit report from the newly-appointed accounting firm BDO. The group reported $66.4 billion in reserves as of June 30, while total liabilities in the quarter amounted to more than $66.2 billion in the latest quarter.

Tether Reports Over $66.4B in Asset Reserves

Stablecoin issuer Tether Holdings released its latest quarterly reserves report for the period ended June 30. The release marks the first audit report Tether published with the BDO Italia, a newly-appointed accounting firm that now vouches for Tether’s asset reserves.

In the release, Tether reported over $66.4 billion in consolidated total assets and more than $66.2 billion in consolidated total liabilities, most of which were related to the tokens Tether issued in the quarter. Tether’s reserves exceeded its liabilities in the three-month period.

“We are fully committed to maintaining our role as the leading stablecoin in the market. The utility of Tether continues to be supported by the transparency of its reserves and has been a leading source of stability allowing us to build a tool for the global economy.”

– Paolo Ardoino, CTO of Tether

The quarterly report also showed a decline of more than 58% in Tether’s commercial paper holdings to $8.5 billion, from $20 billion in the prior quarter. The group added its exposure to commercial papers is expected to shrink to 200 million by the end of this month and to 0 before the end of 2022. On the other hand, Tether’s cash and bank deposit holdings rose by 32% in the period.

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Tether Taps New Accounting Firm and Increases Reports Frequency

Tether’s new report comes just a day after it hired BDO Italia as its new accounting firm to oversee its asset reserves. With the new appointment, Tether also announced plans to raise the frequency of its reserves reports from each quarter to each month.

Tether is best known for issuing the largest stablecoin and the third-largest cryptocurrency by market cap, USDT. Stablecoins are crypto assets that maintain a fixed peg to another currency. USDT’s value is pegged to $1.

Stablecoins, as well as other digital assets, have faced numerous headwinds in 2022 amid the ongoing crypto winter. Challenges like red-hot inflation, supply chain constraints, and the crash of TerraUSD (UST) and LUNA have pushed crypto prices to multi-year lows and tipped numerous firms into bankruptcy.

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