Tether’s assets exceed liabilities in new reserves report by BDO

Regulation

Tether, the issuer of the world’s largest stablecoin by market value, has completed reserves attestation by major global accounting firm BDO.

The stablecoin firm released BDO’s assurance opinion on Feb. 9, which re-affirms the accuracy of Tether’s consolidated reserves report (CRR) as of Dec. 31, 2022.

The CRR shows that Tether’s consolidated assets amount to at least $67 billion, exceeding consolidated liabilities of $66 billion, with excess reserves equaling at least $960 million.

In addition to reducing its secured loans as committed, the report also shows Tether ended 2022 with zero commercial paper.

As previously reported, Tether completely removed commercial paper from (USDT) reserves by mid-October 2022, replacing those investments with United States Treasury Bills. The company originally announced the plan to get rid of commercial paper in USDT reserves in June 2022. At the time, commercial paper accounted for less than 25% of USDT’s total reserves of $82 billion.

Paolo Ardoino, Tether and Bitfinex’s chief technology officer, took to Twitter on Thursday to point out that Tether demonstrated an “impressive resilience” to market black swan events that hit a number of crypto companies amid the bear market of 2022. He wrote:

“Tether demonstrated a superior approach to risk management, that allowed to maintain its leadership, while consolidating profits. Tether reiterates its commitment to be a leader into building Bitcoin and stablecoin technologies, investing in fundamental projects and infrastructures.”

BDO noted that the auditor’s opinion is limited “solely to the CRR and the corresponding consolidated total assets and consolidated total liabilities” as of Dec. 31, 2022. “Activity prior to and after this time and date was not considered when testing the balances and information described above,” the firm added.

Related: Only 4 people controlled Tether Holdings as of 2018: Report

Additionally, the auditing firm said it hasn’t performed any procedures or provided any assurance on the financial or non-financial activity on dates or times other than that noted in the report.

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