TechFlow news — Paolo Ardoino, CTO of Bitfinex and Tether, shared a tweet indicating that Fitch Ratings released reserve composition disclosures for five of the eight major stablecoins in Q4 2021. The reports revealed the quantity and types of reserves, mostly consisting of U.S. Treasury securities or cash. Among them, Tether provided the most detailed report, showing its reserve portfolio carries higher credit risk compared to peers. However, the flexibility of its reserves has increased. By the end of 2021, the proportion of Treasury bills in total reserves rose from 28% at the end of September 2021 to 44%.
Regarding stablecoins with sufficient information disclosure, their reserve compositions are becoming increasingly conservative, placing greater emphasis on cash or Treasuries—aligning with recent regulatory trends. Even Tether, which previously exhibited higher risk tolerance, is shifting toward a more conservative reserve structure, reducing its holdings of certificates of deposit (CDs) and commercial paper (CP) to 31% by the end of last year.
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