Tether (USDT) Evolving to be a Resilient Stable Coin

Tether:  “We believe that compared to before, Tether’s current assets allocation is closer to what regulators are looking for with stablecoin issuers.  We would also argue that despite its reduction in cash, Tether’s collaterals have improved over the last 2 quarters.”

Reportedly, Tether’s current assets allocation are closer to what regulators are looking for with stable coin.  The issuer of Tether after issuing their latest quarterly assurance opinion announced that their reserves exceed its liabilities. The reserve allocation have obviously changed. Based on the disclosed information by Tether from cash to funds and T-bills, the Tether assets outweigh the USDT tokens that it has issued.

Several community members are comfortable with Tether having a 1:1 USD deposits at commercial banks.

At the end of 2021, Tether reported a consolidated total assets of US$78.68 billion and consolidated total liabilities as US$78.54 billion, out of these about US$78.48 billion relates to digital token issuance.

When the report is compared to the September 2021 report, Tether have reduced their cash and bank deposits by 42%, to US$4.187 billion, and their commercial papers by about 21%, from US$30.5 billion to US$24.16 billion.

Allocation to money market funds have increased by 200% to $3 billion and the Treasury bills have increased by 77.6% to $34.52 billion.

This reduction of cash in the bank makes it appear that Tether is subjecting itself to greater risk now as the USDT is backed less by bank deposit a.k.a. cash reserves. However, it is noteworthy that Tether collaterals have increased their share of Treasury Bills and they have lessened its exposure to commercial papers that actually depend on the creditworthiness of private corporations.  Thus, by increasing its share of high-quality liquid assets, Tether are strengthening their liquidity under stress and are evolving to be a resilient stable coin.

Buying USDT Using ATM:  Paolo Ardoino posted a video which showed how easy it is to get Tether USDT using an ATM in Uruguay. And, this is just proof of Hypertetherization.

Also, Merchants are now able to accept EURt payments from their customers on Bitfinex Pay.

Pay with Tether Series:   And, in the recent “Pay With Tether: video series Tether introduced a new business which accepts Tether for their goods and services.

Brucia Pizza are accepting Tether Tokens for an Italian Style Pizza in Buenos Aires.

Episode 15:  Hello, My name is Juan and I am one of the partners at Brucia. A Napolitan Style Pizzeria with natural fermentation and a brick oven. We are in the neighborhood of Colegiales Capital Federal and the first one to accept decentralized coins.

Why accept Tether? We chose Tether as the stablecoin we would accept due to its popularity in Argentina and ease to use. We use cryptocurrencies because we believe that if they are incorporated in the chain of payments from the provider to the sale to the public it brings big benefits to merchants. We are waiting to meet you at Brucia.