Stablecoin Tether crosses $100 billion tokens in circulation

(Reuters) – The number of dollar-pegged stablecoins issued by Tether has surpassed $100 billion, the cryptocurrency company said on its website on Monday.

Tether issues a stablecoin that is designed to maintain a constant value of $1. It is widely used as a way to move money in cryptocurrencies without being exposed to the price fluctuations of other cryptocurrencies such as Bitcoin and Ether.

The company says it maintains a dollar peg by holding dollar-based reserves commensurate with the amount of crypto it creates.

U.S. regulators have warned banks that stablecoin reserves could be rapidly drained, for example, if holders rush to convert them into traditional currencies. There is.

As part of a 2021 settlement with the New York Attorney General, Tether agreed to provide quarterly reports on its reserves for two years.

According to the latest report, Tether’s reserves at the end of 2023 included $63 billion in U.S. Treasuries, as well as $3.5 billion in precious metals, $2.8 billion in Bitcoin, $3.8 billion in “other investments,” and $4.8 billion in other investments. It is said that he held a “collateral loan” in dollars.

(Reporting by Elizabeth Howcroft and Juvie Babu)

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