Tether, the largest stablecoin issuer in the crypto space, released its first breakdown of reserve holdings.
Of their $42 billion in funds, on March 31, Tether claims to hold over 75% of their reserves in cash and cash equivalents, most of which are in the form of commercial paper. The remaining assets include loans to unaffiliated entities (12.55%), corporate bonds, funds & precious metals (9.96%), and additional investments which include bitcoin and other digital tokens (1.64%).
Tether has been subject to much controversy since its inception in 2014, with speculation surrounding the validity of their holdings.
Until March 2019, it claimed to be 1-to-1 backed with USD reserves; Tether’s website then modified this claim to instead be 100% backed by reserves, meaning non-cash (and cash equivalent) assets or loans could also be included in their holdings.
This breakdown of funds comes just after being listed on Coinbase, the cryptocurrency exchange which was recently listed Nasdaq