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Tether earned $1.5 billion in net profit in Q1 2023—Details

TL;DR

  • Tether’s Q1 2023 assurance report reveals a record reserve surplus of $2.44 billion and $1.48 billion in net profit.
  • The company is reducing reliance on bank deposits and increasing liquidity by leveraging the Repo market.
  • Tether enhances transparency by introducing new categories in its Consolidated Reserves Report, including gold and Bitcoin allocations.

Tether Holdings Limited recently released its Q1 2023 assurance report, conducted by BDO Italia, a leading global independent public accounting firm. The attestation reaffirms the accuracy of Tether’s Consolidated Reserves Report (CRR) as of March 31, 2023. Notably, the CRR features additional categories for enhanced transparency, revealing Tether’s reserves surplus reached an all-time high of $2.44 billion, up $1.48 billion for Q1 2023.

Stellar Q1 results and growing trust in Tether

Tether experienced exceptional growth in Q1 2023, with $1.48 billion in net profit bolstering its reserves and a 20% increase in circulating tokens. These results reflect customers’ growing trust in the company, fostering optimism for its future. As of Q1 2023, Tether’s consolidated total assets amount to $81.8 billion, with most reserves invested in US Treasury Bills.

Tether has been working to reduce its reliance on bank deposits as a liquidity source by leveraging the Repo market. This strategy aims to provide users with higher protection standards while maintaining the required liquidity. Approximately 85% of Tether’s reserves are held in cash, cash equivalents, and other short-term deposits, ensuring a highly liquid portfolio.

The latest CRR introduces separate reporting for physical gold, overnight repo, corporate bonds, and Bitcoin ownership, enhancing transparency in Tether’s reserve reporting. The report shows a 25% reduction in secured loans within the overall reserves, with the highest percentage of assets allocated in US Treasury Bills to date. Gold and Bitcoin account for around 4% and 2% of total reserves, respectively. All newly issued tokens have been invested in US Treasury bills or placed in overnight repo.

Tether’s commitment to transparency and future outlook

Tether’s management asserts that the company’s consolidated assets surpass its consolidated liabilities. Paolo Ardoino, CTO of Tether, expressed delight at the record reserves surplus of $2.44 billion and net profits of $1.48 billion for Q1 2023. He highlighted Tether’s ongoing commitment to risk-adjusted returns and risk management processes.

As the company looks forward to Q2 2023, it remains dedicated to transparency, evident in the new categories included in the reserves breakdown. Tether will continue evaluating the global economic environment and take necessary steps to protect customers’ funds from high-risk scenarios. The company’s positive outlook for the future emphasizes its commitment to providing greater transparency and ensuring the stability and growth of its platform.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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