Tether reserves exposed: 77% cash + 103% gold Bitcoin, is this structure reliable?

Question

[Coin World] A certain encryption analyst recently disclosed a set of data regarding Tether's reserve composition – 77% of the fund pool is supported by liquidity cash and equivalents, and what about the remaining 103% of excess reserves? Gold and Bitcoin are shouldering the responsibility.

This reserve structure is actually quite interesting. Cash equivalents account for a large portion, indicating that USDT can handle redemptions with reasonable liquidity; however, the reserve ratio exceeding one hundred percent relies on hard currency assets like gold and BTC. That said, the price of Bitcoin itself is quite volatile, so using it as a reserve carries a significant risk exposure.

Stablecoins have always been the focus of the market regarding reserve transparency. After all, no one wants their “stable” coin to suddenly become unstable one day.

EyeOfTheTokenStorm · Accepted Answer

77% cash + 103% gold Bitcoin, it seems that the risk exposure is slowly shifting, but I am unsure what this structure really means.

Is BTC being used as a reserve? The fluctuation is too intense, a pullback has forcefully breached the reserve ratio, isn&#39;t this a gamble?

The most feared thing for stablecoins is "sudden instability"; historical data tells us that such excessive reserves are often a sign of confidence collapse.

The liquidity data looks good, but don’t be fooled by superficial appearances; the key is whether the market truly buys into it.

From a quantitative perspective, the 103% "excess" is actually propped up by fluctuating assets, and it&#39;s uncertain how long this trick can last.

MetaNomad · Answer

Hmm... Bitcoin as a reserve? This logic is a bit extreme, haha

How can using BTC as a base be called stable? Isn&#39;t this self-contradictory?

With Tether and transparency, I&#39;m already tired of hearing it.

LiquidityWitch · Answer

Are you still bragging about a 103% reserve? With such large BTC fluctuations, using it as a treasury, I really can&#39;t hold this logic together.

GateUser-5854de8b · Answer

Using BTC as a reserve? Isn&#39;t that just using fluctuation to hedge against fluctuation? Seems a bit strange.

SelfMadeRuggee · Answer

Using BTC as reserve funds? Isn&#39;t this a gambler&#39;s logic? With such a large fluctuation, how can one dare to play like this?