After the stablecoin lost its peg to the US dollar last week amid the $UST drop, Tether Holdings Limited has stepped out to allay fears of a probable USD/USDT decline. The world’s largest stablecoin, Tether (USDT), lost its peg to the US dollar earlier this month, causing panic among investors and traders.
Tether (USDT) has tried to ease investor and trader concerns by publishing its quarterly assurance opinion on its website, reiterating that the stablecoin is fully backed.
Tether Holdings Limited released its most recent quarterly assurance opinion, proving the health of its reserves by indicating large decreases in commercial paper assets and an overall gain in US Treasury bills. It also shows that the company’s consolidated assets outnumber its consolidated liabilities.
Tether shows a further approximately 17 percent fall in its asset – backed commercial holdings over the previous quarter from $24.2B to $20.1B; a move Tether has pursued with a further 20 percent reduction since April 1 2022 and which will be shown in the Q2 2022 report, according to the statement.
Tether’s Paolo Ardoino took to Twitter to comment on Tether’s strength in the wake of UST’s large and possibly irreversible depeg. The world of stablecoins has taken a major hit in recent weeks, as one of the largest stablecoins, UST, has vanished. This appears to have impacted USDT as well, since the coin lost its peg and fell as low as $0.95.
Tether is designed to be backed by cash and short-term debt commitments equal to the amount of dollars deposited by its users. Those assets are kept in a reserve controlled by the same company. Since then, the stablecoin has restored its peg.