Tether Reports Record $2.85B Profit as Biggest Stablecoin Nears $100B Market Cap
The stablecoin issuer held over $5.4 billion in excess reserves as of 2023 year-end, according to its latest attestation.
The latest quarterly attestation reported Wednesday showed some $1 billion of the profit came from the interest earned on the company's vast U.S. Treasury, reverse repo and money market fund investments, which are held to back the USDT stablecoin, according to a Tether blog post. The rest came "primarily" from appreciation of Tether's other investments such as bitcoin (BTC) and gold.
According to the latest quarterly attestation signed by BDO Italy, Tether disclosed $97 billion of assets in reserve against $91.6 billion in liabilities as of Dec. 31. This translated to $5.4 billion of excess reserves backing Tether's stablecoins.
The company also issues several other digital currencies pegged to fiat currencies and gold, and recently made investments in bitcoin mining, artificial intelligence and telecommunications.
For years, USDT and the quality of the assets backing it have been a key source of concern in the crypto markets.