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Profits $1 Billion as Tether Holds $72.5 Billion in US Treasuries

Tether Holdings Limited publishes assurance opinion for Q2 2023, confirming accuracy of Consolidated Reserves Report (CRR) and financial standing.

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Key Points

  • Tether Holdings publishes assurance opinion for Q2 2023, affirming CRR accuracy.
  • Excess reserves reach $3.3 billion, exceeding required backing for tokens.
  • Tether’s exposure to US Treasuries is $72.5 billion.
  • Operational profits surge by 30%, investments in energy initiatives, high liquidity.

Tether Holdings Limited, the issuer of USDT, has published its assurance opinion for the second quarter of 2023.

The report, prepared by BDO, one of the world’s leading independent public accounting firms, affirms the accuracy of Tether’s Consolidated Reserves Report (CRR) as of June 30, 2023. It also provides new insights into the company’s financial standing and investment strategies.

Excess Reserves Reach $3.3 Billion

Tether’s excess reserves have experienced a significant increase, reaching a total of $3.3 billion at the end of Q2. These reserves represent the company’s profits that are not distributed to shareholders and are held above the 100% reserves required to back all outstanding tokens.

The CRR reveals Tether’s indirect exposure to US Treasuries, including those held by Money Market Funds and those collateralizing its Overnight Repo. The report discloses that approximately $72.5 billion worth of Treasuries support Tether’s stablecoins.

Tether’s operational profits for the second quarter of 2023 have shown remarkable growth, surpassing $1 billion. This figure represents a 30% increase compared to the previous quarter. Additionally, the company has announced a share buyback totaling $115 million USD, demonstrating its aim for consolidation.

Investments in Energy-Related Initiatives

Tether has utilized the profits from this quarter to invest in energy-related initiatives. However, these investments are not included in the CRR as they are not considered eligible reserves for the token in circulation.

Tether’s reserves remain highly liquid, with approximately 85% of its investments held in cash and cash equivalents. The CRR and the independent attestation from BDO confirm that Tether’s consolidated assets surpass its consolidated liabilities. The total assets of Tether amount to at least $86,499,251,218, while total liabilities reach $83,200,775,340.

Paolo Ardoino, CTO of Tether, expressed his pride in the reserves attestation, highlighting the company’s commitment to transparency. He emphasized that open communication and strong financials are crucial for fostering trust and reliability, especially in a year marked by failures in both the banking and crypto industries.

Closing Thoughts

The release of Tether’s latest report reaffirms the company’s dedication to transparency, risk management, and community engagement. By providing detailed information about its reserves, investments, and financial strategies, Tether aims to set new industry standards and instill trust among its users and stakeholders.

The increase in excess reserves, investments in US Treasuries, and focus on energy-related initiatives showcase Tether’s strategic approach to maintaining stability and driving innovation in the cryptocurrency space.