2023-06-17 16:33:22
As part of a Freedom of Information (FOI) request by CoinDesk and Bloomberg documents obtained more details regarding Tether’s existing USDT collateral and reserves were revealed. These revealed which banks Tether relied on and who issued the commercial paper that dominated its reserves during this period.
Tether has previously shared information regarding the composition of its reserves on several occasions. These revealed that approximately half of Tether’s reserves were made up of securities. Previously, Tether also faced accusations that its reserves included securities related to troubled Chinese real estate developer Evergrande, which Tether categorically denied.
After reviewing the documents just shared, no shares were found from Evergrande, but from several other Chinese financial institutions, including but not limited to:
The Agricultural Bank of China
Bank of China Hong Kong
Bank of Communications
Industrial and Commercial Bank of China
China Merchants Bank
China Construction Bank
Everbright Bank China
China Development Bank
Previous investigations have shown that Tether has significant exposure to Chinese legal entities in its securities portfolio.
Last July, following significantly reducing the amount of commercial paper in its portfolio, Tether announced that it no longer had exposure to such Chinese entities.
The shared documents also show a number of other banks, including but not limited to:
Qatar National Bank
Bank of Sabadell
Barclays Bank
Commercial Bank of Qatar
Deutsche Bank
Credit bank
Japan Post Bank
Bank Communications NY
In addition to banks, Tether also held securities of listed companies
In addition to banks, Tether also held securities issued by other organizations, including the following companies:
Land Securities PLC
Walt Disney Company
General Motors Financial Company
Renault
Louis Dreyfus Company
The report also reports on Tether’s banking relationships. The following banks provided various financial services to the crypto company: Ansbacher (which has since been acquired by Deltec), Deltec Bank and Trust, Capital Union Bank and Taiwan’s Far Eastern International Bank. Several of these connections were previously known, with Tether itself issuing a press release in November 2018 acknowledging the Deltec connection.
Forbes previously reported that Tether also holds funds at Capital Union, Ansbacher and Cantor Fitzgerald. In addition, the documents reveal that Tether held $305 million in USD and $435 million in bitcoins at its sister company, Bitfinex. In comparison, its largest banking partner, Deltec, had $26 billion in assets on deposit.
The documents also revealed that he held approximately $2 billion in assets in two entities identified as “Gold Storage,” nearly $400 million in the Bradbury investment fund, $25 million in the Metis GY Harvesting fund, and approximately $86 million in “GLL”- than.
The newly published information also reveals that secured lending was an essential part of Tether’s operations during this period. They pointed out that more than $5 billion of its assets were in secured loans. It also turns out that, in addition to the well-known bitcoin from before, Tether also accepts securities and ether as collateral.
Tether’s reserves and collateral have come under a lot of criticism in recent years. Especially since the New York Attorney General suspected the company that Bitfinex received hundreds of millions of dollars in loans under the table to cover the damage caused by Crypto Capital Corp. and which resulted in an IOU token issued under the name LEO.
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