Tether Certificate Shows $1.5 Billion Bitcoin in Reserves
Stablecoin issuer Tether (USDT) said it has $1.5 billion worth of Bitcoin (BTC) in reserves.
The stablecoin issuer further disclosed that it held $3.39 billion in precious metals such as gold. This constitutes 4% of the total reserves.
A further breakdown of reserves – provided by the company for the first time – showed that the company held its reserves in overnight repo and corporate bond allocations.
Tether said the majority of its investments, about 85%, are held in cash, cash equivalents and other short-term deposits.
Net profit of $1.48 billion
In its latest certification for Q1 2023, Tether reported a net profit of $1.48 billion, adding that surplus reserves reached a record high of $2.44 billion.
Speaking about this milestone, Tether’s CTO Paolo Ardoino said the growth in reserves and profits reflect the company’s “strength and stability.”
Arduino added:
“We continue to monitor the risk-adjusted returns of all assets in our portfolio on an ongoing basis and expect to make further changes as the general economic environment changes and the market cycle progresses as part of our normal, ongoing risk management processes.”
Assets exceed liabilities
According to the report, Tether’s consolidated total assets at the end of Q1 2023 were $81.8 billion, with the majority in US Treasuries. It reported its total liabilities as of May 9, 2023 to be $79.39 billion, of which $79.37 billion was related to the digital tokens it issued.
Meanwhile, the company claims it is now working to reduce its reliance on pure bank deposits for liquidity by leveraging “the Repo market as an additional measure to ensure higher standards of protection for its users by maintaining the necessary liquidity.”
Arduino said:
“Tether continues to evaluate the global economic environment and has taken necessary steps to ensure that customers’ funds are not exposed to high-risk scenarios.”
The company reported $481 million in cash and bank deposits.
Despite criticism, USDT adoption has increased following the recent regulatory issues that hit its major rivals, USD Coin (USDC) and Binance USD (BUSD).
USDT’s circulating supply stands at $NOK 82.54 billion as of press time, according to CryptoSlate data.
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