Tether plans real-time reserve data reports by 2024: Report
- Tether’s incoming CEO revealed the company is working on a plan to publish reserve data in real-time by 2024
- The precise timeline for its implementation remains to be seen
Tether Holdings, the issuer of the world’s largest stablecoin, Tether [USDT], is reportedly planning to enhance the frequency of releasing its reserve data reports. Paolo Ardoino, Tether’s Chief Technology Officer and incoming CEO, revealed that the company is working on a plan to publish reserve data in real-time by 2024, according to Bloomberg.
Tether’s transparency page indicates that the stablecoin issuer publishes and updates its reserve data at least once daily. In addition to these daily updates, Tether provides monthly and quarterly reserve reviews.
This move toward real-time reserve data disclosure comes at a time when Tether is continuing to gain momentum. This, despite some stagnation in the cryptocurrency markets throughout 2023. Tether reported in its Q2 update that the company’s assets had surged by 5.7% to hit $86.5 billion. The firm also noted an operational profit of over $1 billion, marking a substantial 30% increase from the previous quarter.
In another noteworthy development, Tether’s stablecoin lending activity increased in 2023. This was the case even after the company previously announced the cessation of such loans in December 2022.
Tether to provide more frequent insights
According to the Q2 attestation from the accounting firm BDO, Tether significantly bolstered its excess reserves by adding $850 million. The firm thereby raised the total excess reserves to $3.3 billion. Tether also disclosed having an indirect exposure of $72 billion to U.S. Treasuries held by money market funds and U.S. Treasuries collateralizing its overnight repurchase agreements.
The decision to transition to real-time reserve data reporting is poised to enhance transparency for Tether. The company has been under scrutiny concerning the backing of its stablecoin with adequate reserves. Real-time reporting will likely provide more frequent and detailed insights into the assets supporting Tether, which may help bolster market confidence in the stablecoin.
The precise timeline for implementing this real-time reporting mechanism remains to be seen, as it is set for full deployment by 2024. In the meantime, Tether will continue its current practices of daily and monthly reserve data updates, offering periodic glimpses into its financial position.
Stablecoin issuer acts against unlawful crypto-activity
Tether recently froze 32 addresses involved in illicit activity in Israel and Ukraine, totaling $873,118.34. The stablecoin company partnered with Israeli NBCTF to combat cryptocurrency-driven terrorism. Tether has been actively involved in investigations, working with 31 agencies in 19 jurisdictions to freeze $835 million in assets, primarily linked to theft, including blockchain and exchange hacks.
Despite blockchain industry skepticism, Paolo Ardoino, Tether’s CEO, emphasized the cryptocurrency sector’s commitment to preventing unlawful use. He highlighted the transparency and traceability of cryptocurrency transactions. Ardoino also reinforced the industry’s resolve to collaborate with global law enforcement agencies for security and financial integrity.