Tether (USDT), a stablecoin issuer, has emerged as the preferred stablecoin amid the recent banking turmoil in the United States. According to the latest attestation report, Tether has recorded a net profit of almost $1.5 billion in Q1 2023.
Tether’s Reserves and Investments
Tether’s excess reserves reached an all-time high of $2.44 billion in Q1, compared to $960 million at the end of Q4 2022. The stablecoin has $81.8 billion in consolidated total assets and $79.4 billion in consolidated total liabilities. Tether’s reserves include bitcoin, physical gold, overnight repo, and corporate bond allocations. Its Bitcoin holdings are worth $1.5 billion, while precious metals account for $3.3 billion. 85% of the stablecoin issuer’s investments are held in cash, cash equivalents, and other short-term deposits. Gold and bitcoin represent approximately 4% and 2% of the total reserves, respectively.
Tether’s Future Plans
Tether aims to limit its reliance on pure bank deposits as a source of liquidity and instead leverages the Repo market to ensure higher standards of protection for its users by maintaining the required liquidity. Paolo Ardoino, CTO of Tether, stated that the company is thrilled with the tremendous success it achieved in Q1 2023. The company has an extremely positive outlook for Q2 and remains committed to transparency, which is why it introduced new categories in the reserves’ breakdown in its quarterly report to provide even greater transparency to its users.