Tether CEO Confirms USDT Is 104% Backed by Treasury Bills

Tether CEO Paolo Ardoino recently announced that USDT is 104% backed, reassuring investors that the popular stablecoin is fully supported by a robust reserve of assets. In an interview with Fox Business, Ardoino emphasized that short-term U.S. Treasury bills make up a significant portion of the reserves, making USDT one of the safest digital assets on the market. With a market cap nearing $120 billion, Tether remains focused on transparency and security.

Key Takeaways

• USDT is 104% backed, meaning Tether’s reserves surpass the total supply of the stablecoin.
• The company primarily holds short-term U.S. Treasury bills, considered a safe and stable form of collateral.
• Tether publishes quarterly attestations, ensuring transparency regarding its reserves and assets.

Tether CEO Confirms USDT’s Backing at 104%

In an interview with Fox Business, Paolo Ardoino, CEO of Tether, confirmed that the USDT stablecoin is 104% backed. This means that Tether holds more collateral than the total circulating supply of USDT, primarily through short-term U.S. Treasury bills. Ardoino highlighted the safety of these assets, which form the bulk of Tether’s reserves.

Tether has a market cap approaching $120 billion, and the company’s focus on security and transparency has grown stronger following past regulatory challenges. In 2021, Tether was fined $41 million by the CFTC for misrepresenting its reserves. Since then, the company has taken steps to ensure compliance and has partnered with major financial institutions like Cantor Fitzgerald to oversee its assets.

Transparency and Oversight

Tether’s quarterly attestations offer insights into the company’s reserves. These attestations are crucial for maintaining trust in USDT as a stablecoin, given the volatility of the cryptocurrency market. Tether’s assets include $97 billion in government bonds, managed by Cantor Fitzgerald, which is directly connected to the Federal Reserve, ensuring stability under any market conditions.

Ardoino also addressed concerns surrounding Ripple CEO Brad Garlinghouse’s claims that the U.S. government was targeting Tether. Ardoino dismissed these allegations as fear, uncertainty, and doubt (FUD) and emphasized Tether’s cooperation with regulatory and law enforcement agencies worldwide.

FAQs

What does it mean for USDT to be 104% backed?

It means that Tether holds more collateral than the total circulating supply of USDT, ensuring its stability and security.

What assets back USDT’s reserves?

The reserves primarily consist of short-term U.S. Treasury bills, considered safe and stable, with oversight from Cantor Fitzgerald.

How does Tether ensure transparency?

Tether publishes quarterly attestations to provide transparency about its reserves and assets, maintaining investor confidence.