Redemptions Pushed Tether's Reserves To Fall $16 Billion In June Quarter

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Stablecoin Tether's reserves fell $16 billion in second quarter due to redemptions

Tether, the world's largest stablecoin by market value, said on Friday it had reserves worth $66.4 billion at the end of June, down from $82.4 billion at the end of March, a fall which Tether said was due to fulfilling $16 billion worth of redemptions.

The reserves statement on Tether's website came a day after it said it had switched to accountancy firm BDO Italia to certify its reserves and would aim to release monthly reports by the end of the year.

Stablecoins are a type of cryptocurrency designed to keep constant value, such as a 1:1 US dollar peg. They are widely used in cryptocurrency trading to move funds between different cryptocurrencies or into regular cash.

Financial regulators worldwide have warned that stablecoins could pose a risk to wider financial stability, with Britain among major economies looking to regulate the sector.

Tether says its coin maintains its value by holding dollar-denominated reserves to match or exceed the value of Tether coins in circulation.

Tether's $66.4 billion reserve assets exceed its $66.2 billion liabilities, BDO Italia said in the statement.

In June, Tether's chief technology officer Paolo Ardoino said in a tweet that Tether had processed $16 billion in redemptions. Tether said in emailed comments on Friday that these redemptions were why the reserves fell. A broader crypto market meltdown had prompted investors to swap their Tether holdings back into dollars.

7/In more than one month Tether processed 16B in redemptions (~19% of our total reserves), again proving that our operations, portfolio, banking infrastructure and team are solid and battle tested.

Looks Positive

"The report itself looks positive