Tether Project Weekly Report (0822-0828)
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Top Stablecoin Tether (USDT) Cuts Commercial Paper Holdings, Boosts Cash and Bank Reserves
Top stablecoin issuer Tether (USDT) has begun trimming its commercial paper holdings in line with a pledge made earlier this year.
According to a new report from the firm, Tether has reduced its commercial paper holdings from $20 billion to $8.5 billion in the second quarter of 2022, a drop of more than 58%.
The report was completed by member firms of BDO, one of the largest public accounting networks in the world.
Commercial paper is an unsecured promissory note with a fixed maturity date, primarily issued by large institutions to finance their short-term debt obligations.
Tether said it plans to reduce its commercial paper holdings to about $200 million by the end of August and to zero by the end of the year. Previously, the stablecoin issuer had stated that it planned to reduce its commercial paper holdings to zero in October/early November.
Tether also said it increased its cash and bank deposit holdings by 32% in the second quarter.
"Our commitment to transparency and community is a long-standing pillar of the company's fundamental ethos, consistent with our responsibilities as a market leader. By partnering with BDO, one of the world's top accounting firms, we have reaffirmed this commitment."
https://dailyhodl.com/2022/08/20/top-stablecoin-tether-usdt-slashes-commercial-paper-holdings-increases-cash-and-bank-deposit-reserves/
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Tether shared an update on its further reductions in its commercial paper portfolio, with total commercial paper exposure once again reduced to only about $3.7 billion, with plans to further reduce it to about $200 million by end-August 2022, and by end-October/early November 2022 down to zero.
https://www.odaily.news/newsflash/293649
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Tether maintains its decision not to freeze Tornado Cash wallet address, awaiting instructions from law enforcement
Tether is working closely with law enforcement around the world to assist with investigations, including freezing wallet addresses. We are in contact with law enforcement officials on an almost daily basis and insist on responding to their requests in a timely manner. When Tether receives an applicable/legal request from a verified law enforcement agency to freeze a privately held wallet, the company will comply with the freeze (but not the exchange/service).
So far, the Office of Foreign Assets Control (OFAC) has not indicated that stablecoin issuers will freeze secondary market addresses posted on the OFAC SDN list, or addresses operated by individuals and entities sanctioned by OFAC. Also, no such request has been made by any U.S. law enforcement agency or regulator, although we engage with U.S. law enforcement on a near-daily basis, and their requests are always specific.
As mentioned above, this is the protocol we follow.
Unilaterally freezing secondary market addresses would be a highly disruptive and reckless move for Tether. Even if Tether becomes aware of suspicious activity on such addresses, completing the freeze without verification instructions from law enforcement and other government agencies could interfere with ongoing complex law enforcement investigations. In fact, in our communications with law enforcement, we are sometimes informed of addresses that may be involved in crimes and are specifically instructed not to freeze these addresses without express request from law enforcement, as this may alert the suspect to the Law enforcement investigations, resulting in funds being liquidated or abandoned transactions, and jeopardizing further connections that may have been established.
We would like to point out that other digital asset providers, such as Paxos, a stablecoin regulated in New York that issues BUSD and USDp, with a total cryptocurrency market cap of approximately $20 billion, have not frozen Tornado Cash wallet addresses. We believe USDC’s move to blacklist the Tornado Cash smart contract is premature and could jeopardize the work of other regulators and law enforcement agencies around the world without direction from US authorities. It should also be noted that the algorithmic stablecoin DAI, which accounts for 36% of USDC reserves (approximately $3.4 billion), has also not undergone any freezes.
https://tether.to/en/tether-holds-firm-on-decision-not-to-freeze-tornado-cash-addresses-awaits-law-enforcement-instruction/
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Stella Assange and Farida Bemba Nabourema will join as speakers at the Plan ₿ Forum in Lugano, October 28-29
Stella Assange, attorney and wife of WikiLeaks founder Julian Assange, joins the list of speakers to discuss how Bitcoin can guide the world on social and economic dimensions as well as important topics of personal freedom. Other guests included: Gabriel Shipton, film producer and brother of Julian Assange; Milena Mayorga, El Salvador's ambassador to the United States; Fadi Elsalameen, adjunct senior fellow at the Bitcoin Policy Institute; Farida Bemba Nabourema, human rights activist and Togolese Founder of the "Faure Must Go" movement.
https://tether.to/en/stella-assange-and-farida-bemba-nabourema-to-join-line-up-of-speakers-at-plan-bitcoin-forum-in-lugano-on-october-28th-and-29th/
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Tether and Kraken Audit on Transparency Aims to Boost Confidence in Crypto Markets
Tether Holdings Limited has published its Guaranteed Consolidated Reserves Report for June 2022. Controversy has continued over the reserves held by Tether, which claims its stablecoin is pegged 1:1 to a matching fiat currency and is 100% backed by Tether’s reserves.
According to the latest consolidated reserves report as of June 30, 2022, Tether management claims that the group's consolidated assets exceed its consolidated liabilities. Total assets are $66.41 billion and total liabilities are $66.22 billion, of which $66.2 billion is related to digital assets.
Compared to the consolidated reserve report as of March 31, 2022, the group's consolidated assets were $82.42 billion and its total liabilities were $82.26 billion, of which $82.19 billion was related to digital assets.
Further analysis of the Tether Group's consolidated assets shows that cash and cash equivalents and other short-term deposits and commercial paper totaled $2.88 billion as of June 30, 2022, compared to $70.59 billion as of March 31, 2022. Corporate bonds, funds, precious metals, other investments and secured loans were $13.53 billion as of June 30, 2022, compared to $11.83 as of March 31, 2022.
https://zycrypto.com/tether-and-kraken-transparency-audits-aimed-at-boosting-further-confidence-into-the-crypto-markets/
