Tether’s first quarter audit report: Asset reserves exceed liabilities

Tether released its latest first-quarter audit report on its official website. The report was completed by accounting firm MHA Cayman. The report showed that the company's comprehensive asset reserves exceeded its comprehensive liabilities, investment in commercial paper decreased, and investment in U.S. Treasury securities increased.

The report shows that its commercial paper holdings have further decreased by about 17% from the previous quarter, from $24.2B to $19.9B. Since April 1, 2022, Tether has continued to reduce its commercial paper holdings by 20%, a figure that will be reflected in the second quarter of 2022 report.

This first quarter report breaks down the Group’s assets held as of March 31, 2022:

• Total consolidated assets are $82,424,821,101.

• The consolidated assets of the Merged Group exceed its consolidated liabilities.

• The reserves held by the Merged Group for the issued digital tokens exceed the amounts required to redeem the issued digital tokens.

• The average maturity of consolidated assets has been significantly reduced, with an emphasis on more short-term assets.

The latest report also shows that the group's investments in money market funds and U.S. Treasury bonds increased, from $34.5B to $39.2B, an increase of more than 13%. In addition, the average rating of commercial paper and certificates of deposit increased from A-2 to A-1. Secured loans also decreased by $1B.

Paolo Ardoino , CTO of Tether, said, “The past week was a clear example of Tether’s strength and resilience. Tether has remained stable throughout multiple black swan events and highly volatile market conditions, and even in the darkest days, Tether has not failed to honor any of its verified customers’ redemption requests. This latest financial report further emphasizes that Tether is fully backed and the composition of its reserves is strong, conservative, and highly liquid. As promised, the company committed to reducing its commercial paper investments, resulting in an increase in its holdings of U.S. Treasuries in the process. In fact, since April 1, 2022, Tether has further reduced its commercial paper by 20%, a figure that will be reflected in its second quarter 2022 report. As Tether’s growth in the market further demonstrates Tether’s strength, we are happy to share our financial data at any time as part of our commitment to company transparency.”