In the first quarter of 2022, USDT stablecoin issuer Tether Holdings Limited reduced its reserves in commercial securities by 17%. By the end of the second quarter, the company plans to reduce the amount of collateral on these assets by another 20%.

Assurance Opinion Reaffirms Tether’s Backups Once Fully Supported; Announced Significant Discounts in Commercial Bonds and Increase in US Treasury Bills https://t.co/8qVSQFQBeY

— Tether (@tether_to) 19 May 2022

According to an audit report from accounting firm MHA Cayman, the company’s commercial securities reserves fell from $24.2 billion to $20.1 billion in the three months of 2022.

As of March 31, Tether’s total assets are over $82.42 billion. According to CoinGecko, the market supply of USDT is worth $74.12 billion at the time of writing.

“The consolidated group’s reserves against issued digital tokens exceed the amount needed to repay them,” the report says.

MHA Cayman experts also noted an increase in the share of USDT collateral in US Treasury bonds. Its volume increased from $34.5 billion to $39.2 billion, while the company’s cash deposit reserves decreased from $4.2 billion to $4.1 billion.

The share of “other investments” remained almost unchanged – $ 4.96 billion ($ 5.02 billion in the previous quarter). This group includes all digital assets used to issue USDT. About which tokens are involved – not specified.

Recall that on May 12, against the background of the crypto market crash, the price of USDT briefly lost parity against the US dollar.