Stablecoin issuer Tether (USDT) said it has $1.5 billion worth of Bitcoin (BTC) in reserves.
The stablecoin issuer also revealed that it holds $3.39 billion in precious metals such as gold. This accounts for 4% of total reserves.
A further breakdown of reserves disclosed by the company for the first time showed that the company holds reserves in overnight repos and bond allocations.
Tether said the majority of its investments, about 85%, are held in cash, cash equivalents and other short-term deposits.
Net income of $1.48 billion
Latest Q1 2023 ProofTether reported a net profit of $1.48 billion, adding that excess reserves reached an all-time high of $2.44 billion.
Commenting on the milestone, Tether CTO Paolo Ardoino said reserves and earnings growth reflected the company’s “strength and stability.”
Arduino added:
“We continue to monitor the risk-adjusted returns of all assets in our portfolio on an ongoing basis and as part of our normal and ongoing risk management process, we We look forward to making further changes in the future.”
Assets outweigh liabilities
according to report, at the end of Q1 2023, Tether’s consolidated total assets were $81.8 billion, the majority of which were U.S. Treasury securities. As of May 9, 2023, total debt is reported to be $79.39 billion, of which $79.37 billion is related to digital tokens issued.
On the other hand, the company is currently shifting to pure bank deposits as liquidity by leveraging “the repo market as an additional means to ensure a higher level of protection for users by maintaining the necessary liquidity.” It claims to be working to reduce dependence.
Arduino says:
“Tether continues to assess the global economic environment and is taking necessary steps to ensure that client funds are not exposed to high-risk scenarios.”
The company reported $481 million in cash and bank deposits.
Despite criticism, USDT adoption is on the rise following recent regulatory issues that have hit its main rivals USD Coin (USDC) and Binance USD (BUSD).
The circulating supply of USDT is $82.54 billion at the time of writing, according to crypto slate data.
A posted Tether certificate shows that $1.5 billion worth of Bitcoin is in the reserve, first appearing on CryptoSlate.
