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>Tether, has issued $62bn-worth of tokens which it says are redeemable for a dollar apiece. But of the assets backing the tokens in March only about 5% were cas

>Tether, has issued $62bn-worth of tokens which it says are redeemable for a dollar apiece. But of the assets backing the tokens in March only about 5% were cash or Treasury bills Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper: Commercial Paper and Certificates of Deposit2 $30,807,654,349 Cash & Bank Deposits3 $6,282,756,692 Reverse Repo Notes4 $1,000,662,458 Treasury Bills5 $15,279,528,705 Subtotal $53,370,602,204 How do we go from an assumption of 5% in March to ~85% (53/62) in June? The author I can understand being cautious about the subject of stable coins, but this seems to be the wrong evidence to back their claim. https://tether.to/wp-content/uploads/2021/08/tether_assuranceconsolidated_reserves_report_2021-06-30.pdf https://tether.to/wp-content/uploads/2021/08/tether_assuranc...

lalaland1125 5y ago
Note the terminology there: Cash or treasury bills. That $31 billion in commercial paper might not be actually liquid. The only thing that counts are the $6 billion in cash and $15 billion in treasury bills. There are a number of other issues as well. Which bank is holding that cash? Is it actually a real bank?
- wutbrodo 5y ago
  > The only thing that counts are the $6 million in cash and $15 million in treasury bills. Those figures are all in billions. 21B/62B is still much much higher than the claimed 5%
JumpCrisscross 5y ago
For an effective money market fund, there is a huge difference between cash and bank deposits; Treasuries; and commercial paper, certificates of deposit and reverse repos.
namdnay 5y ago
Careful, commercial paper is most definitely not the same as cash or treasury bills. It could be AAA, it could be BBB- Wasn't there a story about an independent audit that was cancelled or something? I remember the weird assertion that they couldn't disclose whose commercial paper they were holding, which I've never heard before
- JumpCrisscross 5y ago
  > Careful, commercial paper is most definitely not the same as cash or treasury bills. It could be AAA, it could be BBB- It could be an IOU from Binance.
- jpmattia 5y ago
  > It could be AAA, it could be BBB- The ratings were in their August report.
  - runeks 5y ago
    The ratings are in the report linked by OP. Vast majority A-2 or better (S&P).
    - ryan_lane 5y ago
      And many are self-determined and put into (S&P) terms, because they aren't otherwise rated. Tether has outright lied numerous times in the past, and have been caught doing so. Why would you believe their attestation when they won't allow audits?
      - kwere 5y ago
        Because trust Is the base of a society. Why wouldnt You trust a bunch of whitcollar excon? Have Faith!
space_rock 5y ago
This article is not far from propaganda. I don't care for Tether or stable coins but this article is close a paid ad for banks and governments

lalaland1125 5y ago

Note the terminology there: Cash or treasury bills. That $31 billion in commercial paper might not be actually liquid. The only thing that counts are the $6 billion in cash and $15 billion in treasury bills. There are a number of other issues as well. Which bank is holding that cash? Is it actually a real bank?

wutbrodo 5y ago
> The only thing that counts are the $6 million in cash and $15 million in treasury bills. Those figures are all in billions. 21B/62B is still much much higher than the claimed 5%

JumpCrisscross 5y ago

For an effective money market fund, there is a huge difference between cash and bank deposits; Treasuries; and commercial paper, certificates of deposit and reverse repos.

namdnay 5y ago

Careful, commercial paper is most definitely not the same as cash or treasury bills. It could be AAA, it could be BBB- Wasn't there a story about an independent audit that was cancelled or something? I remember the weird assertion that they couldn't disclose whose commercial paper they were holding, which I've never heard before

JumpCrisscross 5y ago
> Careful, commercial paper is most definitely not the same as cash or treasury bills. It could be AAA, it could be BBB- It could be an IOU from Binance.
jpmattia 5y ago
> It could be AAA, it could be BBB- The ratings were in their August report.
- runeks 5y ago
  The ratings are in the report linked by OP. Vast majority A-2 or better (S&P).
  - ryan_lane 5y ago
    And many are self-determined and put into (S&P) terms, because they aren't otherwise rated. Tether has outright lied numerous times in the past, and have been caught doing so. Why would you believe their attestation when they won't allow audits?
    - kwere 5y ago
      Because trust Is the base of a society. Why wouldnt You trust a bunch of whitcollar excon? Have Faith!

space_rock 5y ago

This article is not far from propaganda. I don't care for Tether or stable coins but this article is close a paid ad for banks and governments