- Bank deposits decreased by more than 90%
- Tether added gold and BTC to its asset reserves for the first time
Tether Company published analysis of the report for the first quarter of 2023. In the first quarter of the year, Tether posted a record net profit of $1.48 billion, pushing its reserve surplus to $2.44 billion.
Also, the USDT stablecoin issuer continues to roll back its collateralized loans in line with previous commitments. They were reduced from 8.7% to 6.5%. Also in 2022, commercial paper inventories were reduced to zero. The firm began buying U.S. Treasury bonds for Tether reserves and as of Q1 they hit an all-time high of over $53 billion, or more than 64% of total reserves.
In the first trimester of the year, Tether reduced its bank deposits from $5.3 billion to $481 million, thereby reducing the risk of bank failures. This comes at a time when competitors are in trouble due to heavy reliance on bank deposits, which are also facing financial difficulties.
“If the point of a stablecoin is to provide the world with reliable, stable, money, then it is extremely important that users are protected from counterparty risk as much as possible” the company said in a statement.
Tether has also included gold and bitcoin in its holdings, demonstrating its commitment to stablecoin transparency. They occupy 4% and 1.8% of total reserves, respectively. This is part of Tether’s ongoing commitment to being the industry leader in stablecoin transparency.
Notably, Tether’s profits were higher than well-known companies such as Blackrock, Netflix, Starbucks, Cash App and Paypal.