This website uses cookies to ensure you get the best experience on our website

Tether (USDT) Backed by 50% Commercial Paper and Deposit

There is $62.7 billion of USDT currently in circulation. This makes the digital currency the fourth most valuable, ahead of other coins like ADA, BCH, and LTC.

Cryptocurrency exchanges, including CryptoAltum, offer support for USDT. Its users can deposit USDT tokens directly to their accounts and begin trading within minutes.

Technically, USDT tracks the value of the USD. Therefore, every USDT in circulation means an equal amount of USD is held by a custodian, ensuring the peg stands.

On Aug 9, Tether limited released an assurance report conducted by Moore Cayman, an auditor based in the Cayman Islands, saying Commercial Paper and Certificates of Deposit back 50 percent of USDT in circulation. Ten percent of USDT is backed by cash and bank deposits.

However, this percentage keeps fluctuating. For instance, as of March 2021, each USDT in circulation was backed by 76 percent cash and equivalents. 

Regardless of the minor controversy around Tether Limited, the issuer of USDT, the digital asset remains one of the most liquid stablecoins. It is a vehicle shuttling traders in and out of traders while protecting them from volatility.

For more interesting tips and facts visit our Education Centre.

Have Questions? 

We're available 24/7 to help you. You can email us, or send us a message on WhatsApp, Telegram or Messenger!

Risk Disclosure: Trading cryptocurrencies or any other financial instrument involves a significant level of risk and may result in a total loss of your investment. You should consider carefully whether investing in Bitcoin or any other instrument offered by CryptoAltum is appropriate to your financial situation. CryptoAltum only accepts deposits in Cryptocurrencies. By trading with CryptoAltum you acknowledge your understanding of this risk disclosure and your agreement with the Terms and Conditions.

This website is not directed at any jurisdiction and is not intended for any use that would be contrary to local law or regulation.

CryptoAltum does not accept any clients under the age of 18. 
  • Copyright Techcraft Ltd (CryptoAltum) 2020