Popular stable coin company Tether has released its consolidated reserves report, backing all USDT.
Tether has released its most recent independent assurance opinion that confirms the company’s reserves are fully backed.
The report which has been verified by independent accountants Moore, clarifies that Tether are in fact fully backed. The report from Moore states Tether currently holds consolidated assets amounting to $41 billion as of 31 March 2021.
Moore also states that Tether’s consolidated assets exceeds its consolidated liabilities, meaning the company’s reserves that are held for its digital assets issued exceeds the amount required to redeem the digital asset tokens issued.
USDT backed by company assets
Moore concludes “We believe that the evidence we have obtained is sufficient and appropriate to provide a reasonable basis for our assurance opinion”.
The news is a big step forward for Tether, who have been criticized in the past for not holding any monetary value while continuously printing more Tether (USDT).
Tether has seen tremendous growth over the past several months as the crypto market grows exponentially.
Exponential growth due to TRON expansion
Most recently, the company announced that it has surpassed the $50 billion market capitalization. The rapid growth for a stable coin such as USDT has been credited to its diversification across multiple blockchains. Tether was originally only an ERC-20 token. However its shift to add the TRON network token has seen massive expansion.
Due to high transactional fees on the ethereum blockchain, the Tron backed USDT recently surpassed the supply of its native ERC-20 token. USDT on TRON stands at $26 billion, while the ethereum USDT currently accounts for just over $24.4 billion.
The report confirms that the digital asset USDT is fully backed by company reserves. With Tether commenting on the Consolidated Reserves Report, saying “Today’s publication reflects our continued dedication to making this information public as part of our ongoing commitment to transparency and setting the standard in our industry. We embrace that commitment to our community”.
