Tether generated $1.5 billion in profits in the first quarter of 2023, holds 2% of Bitcoin in total reserves

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Amid the banking turmoil in the US, Tether (USDT) has become the preferred stablecoin.

The resurgence was evident in its latest attestation report, which revealed that the stablecoin issuer recorded a net profit of nearly $1.5 billion in the first quarter of 2023.

According to the official release, Tethers’ excess reserves hit an all-time high of $2.44 billion in the first quarter, up from $960 million at the end of the fourth quarter of 2022. The stablecoin ended the first quarter of the year with $81.8 billion in total consolidated assets, while its total consolidated liabilities stood at nearly $79.4 billion. Tethers reserves included additional categories such as bitcoin, physical gold, overnight repo, and corporate bond allocations. His bitcoin holdings were recorded at $1.5 billion, while those of precious metals accounted for $3.3 billion. 85% of stablecoin issuers’ investments are held in cash, cash equivalents and other short-term deposits. Gold and bitcoin make up about 4% and 2% of total reserves respectively, Tether said it is stepping up efforts to limit its reliance on pure bank deposits as a source of liquidity and instead rely on the repo market as an additional measure to ensure higher standards of protection for its users by maintaining the required liquidity. Commenting on the quarterly earnings, Paolo Ardoino, CTO of Tether, said,

We are delighted with the huge success Tether has had in Q1 2023. Looking ahead to Q2, we have an extremely positive outlook and remain committed to transparency, which is why we have introduced new categories in the breakdown reservations in our quarterly report to provide even greater transparency for our users.

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