• Tether recently published a transparency report which highlights its liquidity cushion of $3.29B.
• The report also states that the company has successfully satisfied all customer requests for redemption and withdrawal of funds in USDT.
• Additionally, the report provides an overview of Tether’s operations, including details on its legal reserves and other corporate activities.
Overview of Tether’s Transparency Report
Tether recently released a transparency report which provides an overview of the company’s operations, legal reserves, and other corporate activities. The report highlights Tether’s liquidity cushion of $3.29 billion, as well as their successful satisfaction of all customer requests for redemption or withdrawal of funds in USDT (Tether’s cryptocurrency).
Details on Liquidity Cushion
The liquidity cushion is composed primarily of cash and equivalents held in bank accounts around the world. This includes US dollar deposits from customers who desire to exchange their fiat currency into USDT tokens and vice versa. It also includes USD-denominated holdings such as government bonds, certificates of deposit, money market instruments, etc., which are used to provide additional stability to Tether’s system. As per the report, Tether is confident that it can meet any customer demand for withdrawals or redemptions with its existing liquidity cushion.
Additional Corporate Activities
In addition to providing details on its liquidity cushion, the transparency report also outlines other corporate activities undertaken by Tether such as: developing new products and services; expanding into new markets; strengthening compliance measures; and increasing transparency through ongoing audits and reviews by third parties. Furthermore, the report states that all transactions are recorded on both internal ledgers as well as public blockchains like Ethereum for increased accountability and security purposes.
Reviews & Audits
As part of its commitment to increased transparency across all areas of operation, Tether has engaged several third-party firms to conduct regular independent reviews & audits on its financial information systems & processes. This includes both external attestation engagements conducted by Deloitte LLP in 2018 & 2019 as well as ongoing monthly attestations conducted by Moore Cayman since April 2020 which have been reviewed by FreeBalance Incorporated (FreeBalance). Additionally, FreeBalance has conducted regular blockchain analytics audits to ensure accuracy & completeness across Tether’s various distributed ledger technologies (DLTs).
Overall, this transparency report provides valuable insight into how Tether functions behind-the-scenes while highlighting important facts about their liquidity cushion & other corporate activities such as product development & compliance measures undertaken by the company. Through these efforts, they hope to further increase trust within the cryptocurrency community regarding their operations & overall legitimacy within the space moving forward.