Tether, the issuer of the USDT stablecoin, released its audited third quarter attestation report on Tuesday, revealing $3.2 billion in surplus reserves, a modest decrease from $3.3 billion in the second quarter.

The corporation recorded its highest-ever percentage of cash and cash equivalents, with the majority coming from US Treasury bills, or T-bills.

Reserves are viewed as a safeguard in the event that a stablecoin loses its one-to-one link or peg to the US dollar.

Tether began converting some of its holdings to T-bills a year ago, and the company’s efforts helped it emerge unscathed from the wave of bankruptcies of three crypto-friendly banks earlier this year.

Cash and equivalents accounted for 85.7% of total reserves in the quarter ended September 30, up from 85% the previous quarter, with T-bills accounting for $72.6 billion, up from $72.5 billion.

The report shows that Tether has reduced its reliance on secured loans as a means to raise revenue. Secured loans make up $5.1 billion worth of USDT reserves, which is about $336 million less than the previous report. The company expects a further reduction in loans heading into November. Another $1.1 billion in loans are said to have been wound down on October 31, leaving $900 million in loans as part of reserves.

The company told The Wall Street Journal that it had honoured loan requests from long-term clients and the loans would be eliminated by 2024.

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