EURT is fully backed by the reserves of the Tether Group. As of March 31, 2023, the reserves comprise cash and bank balances (1%), US Treasuries (66%), Money Market Funds (9%), Overnight & Term Reverse Repos (10%) and a combination of corporate bonds, investments, secured loans and commercial papers (13%).
Note: EURT and USDT are backed by a common pool of assets held by the Tether Group.
For off-chain collateral, we rank storage methods as follows (highest to lowest)
With regulated custodians in reputable jurisdictions
With regulated custodians not in reputable jurisdictions (e.g, BVI, Bahamas)
Others / Undisclosed
Tether refuses to disclose the names of banks and custodians it partners with for custody of reserves. Based on information available in the public domain, we know that Bahamas-based Deltec Bank & Trust, Ansbacher (Bahamas) Limited and Capital Union Bank, and Taiwan-based Far East International Bank, are or have been banking partners of Tether.
Tether does not maintain segregated accounts for assets held on behalf of EURT holders. Tether’s assets are distributed across several associated entities. These assets are not bankruptcy remote.