Tether, issuer of the largest stablecoin by market value, USDT, reported this Thursday (09) in its latest reserves attestation report that it posted a profit of US$ 700 million in the fourth quarter of 2022.
That is, about R$ 3.6 billion at the current exchange rate in reais. As Tether highlighted, this net profit was added to the company’s reserves.
The assurance report from the issuer of USDT was prepared by BDO, one of the five largest independent public accounting firms in the world.
Tether reduces secured loans
According to the company, the report showed that, in addition to reducing its secured loans as promised, Tether ended 2022 with zero commercial papers.
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In addition, the balance sheet shows US$ 67 billion (R$ 348 billion) in total consolidated assets and US$ 66 billion (R$ 343 billion) in liabilities.
In other words, there is an excess reserve of at least US$ 960 million (about R$ 5 billion).
“Tether’s reserves remain extremely liquid, with most of its investments held in cash, cash equivalents, and other short-term deposits.
This latest report demonstrates its commitment to transparency and highlights a US$ 300 million reduction in secured loans, more than US$ 700 million in net profit added to the company’s reserves in the last quarter of 2022, and the highest percentage to date of assets allocated to U.S. Treasury bills, with exposure of more than 58%,” the company said.
In December last year, Tether committed to removing all secured loans from its backing by 2023. This came after The Wall Street Journal stated that the company’s growing list of loans could leave it unable to pay redemptions in the event of a crisis.
And, in fact, Tether appears to have kept that promise, with a reduction in its secured loans of about R$ 1.5 billion.
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Ardoino highlights Tether’s transparency
According to Tether executive Paolo Ardoino, the report shows that the company “continues to fulfill its promise to lead the industry in transparency.”
“After a turbulent end to 2022, Tether once again proved its stability, its resilience, and its ability to deal with bear markets and black swan events, setting itself apart from the bad actors in the industry,” said the CTO.
Ardoino highlighted that the company was able to process more than US$ 21 billion in redemptions “without issues” during the year’s chaotic events.
And in addition, it issued more than US$ 10 billion in USDT. According to him, this is an indication of Tether’s continued organic growth and adoption.
It is worth noting that Tether eliminated commercial papers from its reserves in October 2022. Its assets include corporate bonds, funds, and precious metals.
Tether’s USDT is the largest stablecoin on the market, with a supply of more than 68 billion tokens.
Reference source: investing.com
