Tether (Finally) Releases Breakdown Of Its $42 Billion In Crypto Reserves

Of their $42 billion in funds, on March 31, Tether claims to hold over 75% of their reserves in cash and cash equivalents, most of which are in the form of commercial paper. The remaining assets include loans to unaffiliated entities (12.55%), corporate bonds, funds & precious metals (9.96%), and additional investments which include bitcoin and other digital tokens (1.64%).

forbes Tether (Finally) Releases Breakdown Of Its $42 Billion In Crypto Reserves

Let’s see how this works…

They claim to be backed by a stable currency, the US dollar, which is itself a fiat currency with nothing backing it up, and the ability to create trillions out of thin air.

Then Tether takes this ‘money’ that they get handed to them, and invest in very risky corporate debt, which can also evaporate very quickly depending on government policies, actions, or basic economy moves.