Learn about Tether's surprising reserve numbers and why Celestia is a game-changer in blockchain data availability. Also, SEC faces legal scrutiny.
Tether Boasts Record Percentage of Cash in Reserves

Tether Boasts Record Percentage of Cash in Reserves

Learn about Tether's surprising reserve numbers and why Celestia is a game-changer in blockchain data availability. Also, SEC faces legal scrutiny.

Nov 2, 2023
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Welcome back to another edition of Datawallet Daily, your go-to source for all things crypto. Here's a roundup of the headlines that have been making waves in the digital asset market over the past day:

Tether Boasts Record Percentage of Cash in Reserves

Tether, the firm behind the widely-used USDT stablecoin, recently disclosed that it has a surplus of $3.2 billion in reserves. This claim has been confirmed by BDO Italy, a noted accounting agency. By the end of September, their reserves amounted to $86.4 billion, while their obligations stood at $83.2 billion. 

Around $72.6 billion of Tether's assets are in U.S. government-related holdings. Additionally, Tether holds $5.2 billion in secured loans. They have managed to decrease this amount by $330 million since the last quarter. Still, to meet their December 2022 target of eliminating these loans entirely by next year, they have their work cut out for them.

To give some perspective, USDT has a market valuation of approximately $84 billion, solidifying its position as one of the safest stablecoins. Thanks to the prevailing high interest rates, Tether's quarterly returns are nearing an impressive $1 billion.

Celestia Debuts on Mainnet as First Modular Data Network

Celestia, a groundbreaking data availability blockchain, has now gone live on its mainnet. It's the first-ever modular data availability network open for everyone. The team's even been generous with an airdrop, with 6% of its tokens set aside for the lucky few. 

Now, in the blockchain world, data availability is a big deal. It allows network nodes to download and store transaction information, ensuring its accessibility for verification. Celestia introduces a data availability layer that employs data availability sampling (DAS), eliminating the need to download an entire block's data. This innovation is expected to enhance blockchain efficiency, boost transaction speeds, and reduce costs. 

SEC May Have Violated the Congressional Review Act

The US Government Accountability Office (GAO) recently questioned the SEC's decision in March 2022. The SEC introduced a bulletin that requires the inclusion of cryptocurrency assets on banks' balance sheets. However, the GAO points out that the SEC might have missed a step – getting this checked by Congress.

It is causing a stir in the industry, with several insiders suggesting the SEC might have overlooked some legal steps. It is a reminder of the tricky dance between crypto and regulation.

WalletConnect Limits Use in Russia Due to OFAC Guidelines 

WalletConnect, known for facilitating crypto wallet integrations, has decided to suspend its services in Russia. This decision aligns with guidelines from the U.S. Treasury's Office of Foreign Assets Control (OFAC). With the ongoing Russia-Ukraine tension, sanctions against Russia are on the rise, and OFAC has been keeping a close eye on crypto movements in Russia since at least 2021. 

Pedro Gomes, WalletConnect's CEO, mentioned a brief hold-up in Ukraine but confirmed it has been resolved. He also emphasized that no other nations faced service restrictions.

Other breaking news

Wrapping up

And that wraps up today's edition! We delved into Celestia, one of the most promising blockchains that has launched recently. We also discussed Tether; despite the ongoing FUD surrounding it, their reserves appear quite healthy. Meanwhile, the SEC is in the spotlight again for a potential violation of the Congressional Review Act. On another note, sanctions on Russia are intensifying, with WalletConnect now restricting access for Russian users. Stay tuned with us!