The biggest controversy in crypto is Tether’s backing. Critics claim it’s printed out of thin air, while Tether Limited claims full reserves. In this 2025 deep dive, we analyze the latest attestation reports and the composition of the USDT reserve.
The Shift to US Treasuries
In the past, Tether held commercial paper (corporate debt). However, recent reports show a massive shift to US Treasury Bills. This is significant because T-Bills are considered the safest asset in the world.
Proof of Reserves vs Audit
Tether provides quarterly “attestations” by BDO Italia, not a full “audit”. An audit is more rigorous. While attestations confirm the snapshot of funds, critics argue a full audit is needed for total trust.
What Happens if Tether Collapses?
If USDT de-pegs significantly, it could crash the entire crypto market. However, Tether has processed billions in redemptions during past crises (like the FTX collapse) without flinching, proving its liquidity.
