Nearly half of Tether reserves are now in US Treasury bills

Commercial paper backing Tether (USDT), the world’s largest stablecoin, has decreased by 17% from US$24.2 billion in Q4 2021 to US$20.1 billion in Q1 2022, according to Tether’s latest attestation report. 

Fast facts

• Commercial paper in Tether reserves has been reduced by an additional 20% since April 1, and will be reflected in the next quarterly report, Tether said. 

• Tether also reduced its bank deposits from the previous quarter’s US$4.2 billion to US$4.1 billion. 

• U.S. Treasury bills backing the stablecoin increased by over 13% from US$34.5 billion in the previous quarter to US$39.2 billion in Q1 2022, representing nearly half of all Tether reserves. 

• Tether’s latest attestation report comes at a time when the stablecoin ecosystem is under a microscope due to Terra’s algorithmic stablecoin TerraUSD (UST) de-pegging fiasco. 

• Major collateralized stablecoins USDT and USDC are currently trading at US$1, and algorithmic stablecoin has also been maintaining its peg to the greenback despite some turbulence. 
• Tether’s total assets have gone up from US$78.7 billion to US$82.4 billion, compared to the previous quarter, but the real-time market capitalization of USDT was measured at US$79.6 billion at press time.