• Tether recently released a reserve report which showed total assets of $86.1 billion and a liquidity cushion of $3.2 billion.
• USDT has been the leading stablecoin in terms of market cap with competitors struggling to keep up.
• The issuer has faced regulatory scrutiny in recent years with the CFTC fining it $41 million for allegedly sharing untrue financial statements.
Tether Total Assets
Tether, the leading stablecoin issuer, recently reported its total assets at $86.1 billion while liabilities amounted to $82.8 billion resulting in a liquidity cushion of $3.2 billion signifying a surplus to the delight of the community.
USDT Dominance
USDT has led the stablecoin market for some time now keeping its competition in the shadows amid regulatory concerns. In June, it hit an all-time high as its market cap soared above $83 billion with other stablecoins failing to stay afloat with USDC posting a market cap of 55.8 billion in June 2022.
Regulatory Scrutiny
The company has come under regulatory scrutiny for allegedly sharing untrue financial statements resulting in a fine by the Commodity Futures Trading Commission (CFTC) in Oct 2021 as well as users’ fears following the collapse of Terra Network’s algorithm-backed stablecoin earlier this year . Despite those events, Tether’s transparency reports have not been questioned by regulators leading to its growing popularity among investors even when new competition arises .
Surplus Reserves
In total, Tether posted a liquidity cushion of over 3billion signifying a surplus and shareholder capital held on multiple networks such as Solana ($1.57bn), Ethereum ($617mn) and Tron ($353mn). This highlights that USDT is the only stablecoin under Tether that boasts excess reserves above its liabilities while CNHT, XAUT, MNXT and EURT cannot maintain their 1:1 peg during times of crisis .
Q2 Profit Report
In Q 2 , Tether reported an increase in profit by 30%, bringing its reserves to over 3billion whilst boasting profits of 850$. This shows stability within the company despite uncertain regulatory conditions .