Tether Earns a Staggering $1.5 Billion in Q1, Doubling Its Previous Quarter's Profit!

Tether Diversifies Reserves 

Stablecoin issuer, Tether, reported a profit of $1.5 billion during the first quarter of 2023, more than double during the last quarter.

According to the latest attestation report, Tether's consolidated total assets amounted to at least $81.8 billion, while its consolidated total liabilities amounted to $79.4 billion, indicating excess reserves of at least $2.44 billion — an all-time high.

For the first time, Tether also included additional categories in its reserves reporting, including bitcoin, physical gold, overnight repo, and corporate bond allocations. It holds $1.5 billion worth of bitcoin and $3.3 billion worth of precious metals. The majority of its investments, around 85%, are held in cash, cash equivalents, and other short-term deposits, with gold and bitcoin representing around 4% and 2% of the total reserves, respectively.

This news comes after a turbulent period for the stablecoin market, during which several tokens lost their dollar pegs. However, Tether's dollar-pegged USDT has increased its market capitalization by $16 billion since the start of the year, representing 24% growth.

Tether has been criticized in the crypto industry for years for lack of transparency about its reserve assets and controversial maneuvers. Last year, a U.S. judge ordered the firm to produce documents about USDT's backing as part of a lawsuit that alleged Tether conspired to inflate BTC's price with newly issued stablecoins.

Despite the criticism, Tether's latest attestation report indicates that the firm is continuing to grow and diversify its reserves. It has also promised to completely exit from secured loans this year.

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What is Tether:

Tether is the most widely adopted coin in circulation. USDT was the first-ever stablecoin introduced to the market. It is designed to peg its issued coin 1-to-1 with the Dollar. Tether was one of the first stablecoins issued in several blockchains, available on the Tron, ETH, Omni, EOS, Algorand, Solana, and the Binance Smart Chain (BSC) networks. It has received mass adoption as the reserve currency for most traders as it doesn’t fluctuate like typical crypto coins.

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