Tether responds to WSJ’s insolvency claim, says its US Treasury assets are safe
Tether has responded to concerns raised by a recent article by The Wall Street Journal claiming that the USDT issuer has inadequate reserves. Tether’s financials released on Aug. 25 revealed it has $67.7 billion in assets as compared to $65.7 billion in liabilities, making a difference of $191 million.
The WSJ’s article had claimed that a mere 0.3% decline in asset value could result in “technical insolvency” for the stablecoin issuer. In response, Tether noted that the U.S. Treasury bills which back over 50% of the USDT stablecoin are the premier safe asset for several decades. Defending the health of the reserve, Tether said that $10 billion worth of USDT was redeemed in a single week, indicating its ability to withstand bank runs.
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