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WFHRenaissance

As of 2021, their reserves consist of:

Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper (75.85%):

- Commercial Paper (65.39%)

- Fiduciary Deposits (24.20%)

- Cash (3.87%)

- Reverse Repo Notes (3.60%)

- Treasury Bills (2.94%)

Secured Loans (none to affiliated entities) (12.55%)

Corporate Bonds, Funds & Precious Metals (9.96%)

Other Investments (including digital tokens) (1.64%)

Anyone saying Tether is not backed in any way is illiterate or a conspiracy theorist.

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I would guess that the lawsuit alleges either:

a) These percentages are true, but they don't actually add up to the amount of tether issued.

b) This was true in 2021 but is no longer true

c) This numbers were not an accurate representation.

I'll borrow 100 bucks from you, they'll be backed too:

- $25 in my gas tank (50.0%)

- $10 in a crumpled bill in my pocket (20%)

- $15 of groceries that are in my fridge (40%)

don't worry about how much it adds up to or if it's liquid, it's backed

I love that these percentages add up to 110%, and even more so when comparing the dollar amount and associated percentages in relation to the original $100 and to each other.

But the numbers do add up?

The percentages add up. Are you certain that for every $100 in USDT they issue, they acquire another $2.94 in T-bills, $3.87 in cash, take out a secured loan for $12.55, and so on?

They could indeed have all of those percentages, in exactly that relationship, all combined worth... a million dollars. That would be far, far, far, far short of what it should be.

The attestation reports tell you the actual numbers (not percentages) of holdings grouped by asset type. [1]

> The Group’s consolidated total assets amount to at least US$ 66,409,619,424.

> The Group’s consolidated total liabilities amount to US$ 66,218,725,778, of which US$ 66,204,234,509 relates to digital tokens issued.

> ... US Treasury Bills ... $28,856,434,491

> ... other holdings by asset type

[1] https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...

..what's the worth of that commercial paper? What's the _trustworthiness_ of it? Who is it from?

From [1], the value of that commercial paper was $24,165,815,363. $23,615,946,340 of it was rated A-2 (Tier-2) or better (A-1/Tier-1 and A-1+/Tier-1+). This is equivalent to BBB or better (A to AAA) rated bonds. The report does not specify the CP issuer.

Tether's consolidated reserves have since changed composition. [2] The most recent report shows (approximate percentages):

- US Treasury Bills (43.45%)

- Commercial Paper and Certificates of Deposit (12.65%)

- Money Market Funds (10.25%)

- Cash & Bank Deposits (8.15%)

- Reverse Repos (4.5%)

- Non US Treasury Bills (0.59%)

- Bonds, Funds, Metals, Other, Loans (20.37%)

So the commercial paper was so far trustworthy enough to allow them to rotate out of much of their CP position and into US Treasury bills.

[1] https://assets.ctfassets.net/vyse88cgwfbl/4hiNJsZ98LlZqCJHKz...

[2] https://assets.ctfassets.net/vyse88cgwfbl/2xJyKdUKicdRUWpC9b...

Since April of this year USDT has lost ~20% of its market cap. Presumably, this was tethers being redeemed for USD. Would be interesting to know which of the listed assets Tether sold off to fund these redemptions and whether they had to sell any of them at a loss.

It was likely Tether being swapped for other stablecoins, or Tether swapped as a TETHER/USD pair on a centralized crypto market.

Allegedly.

And I'm sure it's partially backed by something, the issue how much is it really backed and by what.

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