Finance & Economics

Tether Announces $960 Million In Excess Reserves

Tether has published a report according to which there are excess reserves and the transfer of assets to treasury bills.

Tether Announces $960 Million In Excess Reserves

Source: Pixabay.com

The attestation report prepared by the public accounting firm BDO and published on February 9 by Tether said that the issuer of the tether stablecoin (USDT) had $67 billion of consolidated total assets, $66 billion of consolidated total liabilities, and $960 million of excess reserves. These indicators are relevant as of December 31, 2022.

According to the results of the last quarter of last year, Tether added a net profit of $ 700 million to its reserves and distributed 58% of its assets to US Treasury bills. The company ended the year without commercial papers.

Paolo Ardoino, Technical director of Tether, said that after the stormy end of the past year, the company has once again proved its stability, resilience, and ability to cope with bear markets. He also noted that this result demonstrates the competitive advantage of the firm in comparison with other representatives of the industry.

Tether’s stablecoins and the entire industry have come under renewed scrutiny since the collapse of FTX. Tether is pegged to the US dollar, which means that each coin is backed by the US currency in a 1:1 ratio or equivalent.

The company’s press release says that after reducing commercial securities to zero, its reserves are liquid in the form of cash, cash equivalents, and other short-term deposits.

Paolo Ardoino stated that Tether continues to be a driving force in restoring trust in the crypto industry. He also noted that the company will continue to set an example of the right business strategy for its competitors and colleagues.

Tether is currently the third most popular cryptocurrency in the world and one of the most sought-after stablecoins. The token was created on the Omni Layer, which is an add-on based on the bitcoin blockchain.

As we have reported earlier, Tether’s Settlement Volume Flips Visa and Mastercard.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.