Tether provides daily updates of its reserves breakdown on its website. As of March 3, 2024, it reported assets of $99.45 billion for USDT. The company reported holding 84.58% of its reserves in cash, cash equivalents, short-term deposits, and commercial paper; 76.87% of this was in U.S. Treasury bills.

Additionally, it held 0.05% in corporate bonds, 3.62% in precious metals, 2.91% in bitcoin, 4.95% in secured loans, and 3.89% in other investments.

The Role of Stabilization in Tether's Popularity

Stable value makes stablecoins appealing for use as a medium of exchange, similar to traditional money.

In practical terms, stablecoins have made it easier to speculate in cryptocurrency markets. Their rapid growth in popularity is also the result of stablecoins' use as collateral by decentralized finance (deFi) lending and staking protocols.