Tether Has Around $1.6 Billion To Back Its USDT Stablecoin

Mar 24, 2023

온라인 슬롯 사이트

The crypto firm’s CTO said that USDT is backed up by a .

Making a Lot Of Profit

Crypto firm Tether expects to make a $700 million profit in the March quarter, raising its total reserves to over $1 billion. Tether issues the USDT stablecoin, which is pegged one-to-one to the US dollar and backed by real-world assets like fiat currencies and US Treasuries. Stablecoins allow traders to move between cryptocurrencies without converting money back into fiat currencies.

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— Paolo Ardoino 🍐 (@paoloardoino)

Questionable Transparency

Tether has faced criticism for not being transparent about the assets it holds in reserve to back its digital currency. The company previously held commercial paper but did not reveal details about the firms or locations involved. Tether later sold all its commercial holdings and invested in US Treasuries, a more stable and reliable asset. The company produces attestations, which are audit reports on its reserves and assets.

Financial Report

In the last report covering the December quarter, Tether had more assets than liabilities. The company revealed a $700 million profit in the December quarter, with total assets minus liabilities equaling $960.6 million. Tether’s CTO, Paolo Ardoino, estimates that excess reserves will increase by $700 million in the current quarter, taking the total to $1.66 billion, a first for Tether.

The USDT Peg

Tether makes money from fees, investments in digital tokens and precious metals, and issuing loans to other institutions. The value of all USDT in circulation increased from $70.98 billion on March 1 to $78.14 billion due to the collapse of Silicon Valley Bank. Rival stablecoin issuer Circle, which issues USD Coin, revealed a $3.3 billion exposure to the bank. Investors moved to Tether as USDC lost its dollar peg, but it later regained its peg when the US government guaranteed depositors.

Safer Choice

Ardoino defended Tether’s record and questioned why people still doubt its reserves after traditional banks have collapsed. He referred to the instability at Credit Suisse, which led to a $3.2 billion deal for UBS to buy the Swiss lender. He argued that Tether is a safer choice for investment.
He said: