Tether, Issuer of USDT, has Profit of BRL 3.6 Billion

Tether, issuer of the largest stablecoin in market value, USDT, informed this Thursday (09), in its most recent report of attestation of reserves, that it obtained a profit of US$ 700 million in the fourth quarter of 2022. In other words, around BRL 3.6 billion at the current exchange rate in reais. As highlighted by Tether , this net profit was added to the company’s reserves.

The USDT Issuer Assurance Report was prepared by BDO, one of the world’s top five independent public accounting firms.

Tether reduces secured loans

Also according to the company, the report showed that, in addition to reducing its secured loans, as committed, Tether ended 2022 with zero commercial paper. 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. That is, there is a surplus reserve of at least US$ 960 million (about R$ 5 billion).

“Tether’s reserves remain extremely liquid, with the majority of its investments being held in cash, cash equivalents and other short-term deposits. This latest report demonstrates its commitment to transparency and highlights a $300 million reduction in secured loans, more than $700 million of net income added to the company’s reserves in the last quarter of 2022, and the highest percentage to date of assets allocated to US Treasury Bills, with exposure of more than 58%,” the company said.

In December last year, Tether pledged to remove all secured loans from its backing by 2023. This came after the Wall Street Journal said the company’s growing list of loans could make it unable to pay redemptions in the event of a crisis. . And indeed, Tether appears to have delivered on that promise, with a reduction in its secured loans by around BRL 1.5 billion.

Ardoino Highlights Tether’s Transparency

According to Tether director Paolo Ardoino, the report shows that the company “continues to deliver on its promise to lead the industry in transparency.”

“After a tumultuous end to 2022, Tether has once again proven its stability, its resilience and its ability to handle bear markets and black swan events, differentiating itself from the bad actors in the industry,” said the CTO.

Ardoino highlighted that the company was able to “run smoothly” over $21 billion in redemptions during the chaotic events of the year. And on top of that, it issued more than $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 paper 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 over 68 billion tokens.

Reference source: investing.com