Reading 3 min Views 1 Published Updated
Tether Holdings Limited, the issuer of the world’s largest stablecoin USDT, has published its Q1 2023 Guarantee Report, validated by BDO Italia, one of the world’s top five independent accounting firms. The report confirms the accuracy of Tether’s Consolidated Reserves Report (CRR), which details the assets held by the group as of March 31, 2023.
The CRR includes additional categories for the first time, including physical gold, overnight repos, corporate bonds, and Bitcoin holdings, which aim to improve the reporting transparency of Tether reserves. In addition, the report shows an increase in Tether’s excess reserves, hitting a record high of $2.44 billion, up from $1.48 billion in the previous quarter.
Tether’s Q1 Net Earnings Beat Blackrock, Leading Hedge Fund Manager
The recently released Q1 2023 Guarantee Report highlights the impressive performance of the stablecoin in the first quarter of the year. The report shows that Tether posted a staggering $1.48 billion in net income for the quarter, which greatly helped to bolster its reserves. What’s more, the report shows that tokens in circulation increased by 20% during the quarter, indicating the high confidence of Tether customers in the stablecoin.
In addition, the company ended the first quarter of 2023 with total consolidated assets of $81.8 billion, with most of its reserves invested in US Treasury securities. Tether is also taking steps to reduce its reliance on bank deposits as a source of liquidity. It uses the repo market as an additional measure to provide a higher standard of protection for its users by maintaining the necessary liquidity.
The report demonstrates Tether’s commitment to transparency, with the majority of its investments held in cash, cash equivalents and other short-term deposits (roughly 85%).
It also highlights a 25 percent reduction in secured loans from 8.7% to 6.5% of this asset class within total reserves and the highest percentage of assets held in US Treasury bills to date. Gold and bitcoin account for 4% and 2% of total reserves, respectively. All new releases of tokens were invested in US Treasury bills or placed in an overnight repo.
Last but not least, Tether outperformed BlackRock, one of the world’s leading providers of investment, advisory and risk management solutions, in net income in the first quarter of 2023. Tether reported $1.48 billion in net income, highlighting investor confidence to the issuer of the stablecoin and the cryptocurrency market in general.
Strengthening the position of the leading stablecoin
The Tether report shows that its consolidated total liabilities are $79.4 billion, of which $79.3 billion is in issued digital tokens. Despite this, the group’s consolidated assets exceed its consolidated liabilities, testifying to the strength and stability of the platform.
Tether’s success in the first quarter of 2023 is clear, with a record surplus of $2.44 billion in reserves and a net profit for the quarter of $1.48 billion. Paolo Ardoino, CTO of Tether, attributes this success to the strength and stability of the platform, as well as the company’s current risk management processes.
Looking ahead to the second quarter, Tether has a very positive outlook, according to the report. He assesses the global economic environment to ensure that his clients’ funds are not exposed to high risk scenarios. Because its holdings remain extremely liquid and diversified across asset classes, Tether remains the leading stablecoin issuer in the cryptocurrency market.