Tether, the issuer behind the largest stablecoin ‘USDT’ has just provided the latest details in regard to the reserve assets that back its value.
USDT, which is pegged with the USD, has recently shared data providing an update on the changes made to the reserve assets.
US Treasuries are Dominant Holdings
The stablecoin issuer has confirmed that they have shifted from cash reserves being the dominant holding to a new one. Now, the dominant holdings backing their USDT are the US treasuries.
On Monday, Paolo Ardoino, the chief technology officer (CTO) at Tether provided an update on their holdings in a Twitter post.
Ardoino has revealed that now, their dominant holdings for the USDT reserves are in the form of the US Treasuries. Commonly, the US Treasuries are referred to as t-bills.
To be precise, Ardoino confirmed that 58.1% of the total reserves being held to back the USDT are the US Treasuries.
Follow-up Tweet by Ardoino
After tweeting about the updated reserves for USDT, Ardoino tweeted again with a suggestion to the teams responsible for managing Tether’s website.
He stated that the latest details surrounding the USDT, even the updated reserves backing the stablecoin must be updated on the website.
Ardoino added that all of the latest details and information must be added to the “Transparency” page of the website of Tether. According to him, the information must be updated on the particular page within the claimed timeline of 45-days.
However, he did add that going forward, the 45-day time period must be reduced to ensure that the users are able to view the latest information.
Criticism for Tether
In the past, Tether has faced a tremendous amount of pressure and criticism from the cryptocurrency community about its reserve holdings.
Many have doubted the position of USDT due to the commercial debts that are also part of its reserve holdings. This is something that has been considered highly risky and people do not find them safe compared to government bonds.
Therefore, it was an understanding for the teams behind Tether to ensure they made the US Treasury bills the primary reserve.
Many claimed that Tether had no backing at all for the USDT. However, Ardoino all such rumors and confirmed that the majority of the USDT was backed by the Chinese commercial paper that was considered low-grade.
Ardoino not only denied such rumors but also went on to segregate the dominance of each reserve asset. According to the previous claim made by Ardoino, 47% of the reserves for the USDT were in the form of US Treasuries.
Now, the percentage for the US Treasuries has increased to 58.1%.