Tether Holdings Limited, the issuer of the USDT stablecoin, has reported impressive financial results for the second quarter of 2023. The company has achieved a profit of $850 million during this period, bringing its total excess reserves to a significant $3.3 billion.
As part of a deal with the New York Attorney General’s office in 2021, Tether agreed to provide quarterly reports on its reserves for the next two years. This commitment to transparency ensures that stakeholders and the public have visibility into the company’s financial health.
Stablecoins are a type of cryptocurrency designed to maintain a constant value, often backed by traditional assets such as the US dollar. USDT, particularly, is pegged to the US dollar and generally maintains a value close to $1. Currently, there are $83.8 billion worth of USDT in circulation, making it the largest stablecoin in the market and the third-largest cryptocurrency overall, according to data from Coinmarketcap.
The recent report, titled “Tether’s Second Quarter Consolidated Reserves Report,” is a certified financial statement prepared by the reputable accounting firm BDO. It outlines the company’s assets, liabilities, and overall financial standing.
During the second quarter of 2023, Tether made a profit of $850 million, contributing to its substantial total excess reserves of $3.3 billion. The company experienced significant growth, with operational profits exceeding $1 billion between April and June 2023, representing a remarkable 30% increase quarter over quarter.
Notably, the report provides new insights into Tether’s indirect exposure to United States Treasury Bills through money market funds. Additionally, it reveals the Treasuries used to collateralize the Overnight Repo, a short-term borrowing mechanism for dealers in government securities. These combined assets amount to approximately $72.5 billion, backing the value of USDT.
Moreover, the report indicates that Tether conducted a share buyback of $115 million and invested in energy-related initiatives, which do not form part of its stablecoin reserves. Overall, Tether’s consolidated total assets amount to at least $87 billion, while its consolidated total liabilities amount to $83 billion, primarily related to digital tokens issued.
In response to the positive financial results, Tether’s Chief Technology Officer, Paolo Ardoino, expressed immense pride and emphasized the company’s unwavering commitment to transparency. He stated that transparency is a crucial aspect of Tether’s philosophy, fostering trust and reliability within the global community, especially in a year marked by numerous failures in the banking and crypto industries.
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