Clearing the Air: Tether CEO Reveals Reserves Backing USDT

Crypto News Business

Written by Gode S.,

Web3 Market Analyst

Last Updated: October 28, 2024

Key Takeaways

Tether's CEO disclosed the company's asset reserves to counteract allegations of legal violations;
The USDT stablecoin is backed by $100 billion in US Treasuries, over 82,000 Bitcoins, and 48.3 tons of gold;
Tether denies any ongoing investigations and highlights its cooperation with law enforcement to prevent illegal activities involving USDT.

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Clearing the Air: Tether CEO Reveals Reserves Backing USDT

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Facing allegations of regulatory violations, Paolo Ardoino, the CEO of Tether, disclosed information about the company's asset reserves to dispel uncertainty surrounding the company's financial stability.

Ardoino revealed that the USDT USDT $0.9993 stablecoin is supported by approximately $100 billion in US government bonds, over 82,000 Bitcoin BTC $89,390.16 valued at around $5.6 billion, and 48.3 tons of gold.

These revelations came in response to a Wall Street Journal report suggesting that US authorities were investigating Tether for potential breaches of anti-money laundering laws and sanctions.

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The allegations presented in the WSJ article had created a climate of fear and doubt. Ardoino denied any claims, stating:

At Tether, we deal regularly and directly with law enforcement officials to help prevent rogue nations, terrorists and criminals from misusing USDt. We would know if we are being investigated as the article falsely claimed. Based on that, we can confirm that the allegations in the article are unequivocally false.

Beyond the recent media scrutiny, Tether has previously faced criticism from consumer advocacy groups like Consumers' Research. These organizations have questioned the transparency of the reserves backing USDT, urging the company to provide more detailed disclosures.

By openly sharing the composition of its reserves, Tether aims to address these concerns and reinforce its commitment to transparency and regulatory compliance.