Tether Reserves Report: USDT Maintains Dominance With $86.1 Billion Total Assets, Over 100% Reserve-Backed

Stablecoin issuer Tether posts its total assets at $86.1 billion as it maintains its leading market share despite growing competition and uncertain regulatory conditions.

In the company’s reserve report, while total assets stood at $86.1 billion, its liabilities amounted to $82.8 billion. Liabilities include user assets held in USDT across multiple networks.

This report shows the company’s stability as its reserves are over 100%. In total, the company posted a liquidity cushion of $3.2 billion signifying a surplus to the delight of the community.

The issuer’s $3.29 billion surplus is shareholder capital which is held on multiple networks, over 15 as explained in the statement. 

Across the networks, Solana has a value pre-authorization of $1.57 billion with Ethereum and Tron coming next with $617 million and $353 million.

In recent years, Tether has come under regulatory scrutiny for allegedly sharing untrue financial statements resulting in a $41 million fine by the Commodity Futures Trading Commission (CFTC) in Oct 2021.

Those events led to users’ fear which heightened with the collapse of the Terra Network following the failure of its algorithm-backed stablecoin in April 2022. 

On the bright side, Tether’s previous transparency reports have not been questioned by regulators leading to its growing popularity among investors even in the wake of new competition.

Per the report, USDT is the only stablecoin under Tether that boasts of excess reserves above its liabilities. The other assets, CNHT, XAUT, MNXT, and EURT cannot keep up the 1:1 peg with its balance in the event of a crisis.

USDT leads the pack

USDT has led the stablecoin market for a long time keeping its competition in the shadows amid regulatory concerns.

In the company’s Q2 report, it reported a profit of $850, a 30% quarter-on-quarter increase bringing its reserves over $3.2 billion.

In June, the company hit an all-time high as its market cap soared above $83 billion with competitors struggling to stay above the water. USD Circle stands in second place in terms of market cap with $28.8 billion, a staggering $50 billion behind USDT. 

The dominance of USDT can be noted in the recent slump of USDC which recorded a market cap of 55.8 billion in June 2022. The stablecoin has faced recent headwinds including losing its peg earlier in the year after the Silvergate Bank saga.

Binance USD, (BUSD) currently has a market cap of $5 billion with its CEO Changpeng Zhao highlighting the regulatory cap of BUSD by the New York Department of Financial Services at $23 billion as a key reason for the surge of USDT. 

BUSD, a fully regulated stablecoin, was "capped" (no new minting) by NYDFS at $23b. Now at $5b market cap.

Since then, USDT has seen tremendous growth. https://t.co/KqBkDK71WS

— CZ 🔶 BNB (@cz_binance) June 1, 2023