July 31, 2023 at 14:51 GMTModified date: July 31, 2023 at 14:51 GMT
July 31, 2023 at 14:51 GMT

Tether bolsters reserves with $850m injection

Tether, the leading stablecoin issuer recently announced that it has strengthened its reserves by injecting an additional $850million.

Tether (USDT). Pic: Unsplash

Tether, the leading stablecoin issuer recently announced that it has strengthened its reserves by injecting an additional $850million. The addition brings its total excess reserves to $3.3billion at the end of Q2 2023 and reflects the team’s focus on stability and transparency.

Per the report, the excess money added to the reserves constitutes profits not distributed to shareholders.

“As a reminder, excess reserves are the company’s own profits – not distributed to shareholders and which the company has decided to keep on top of the 100% reserves that Tether maintains to back all the outstanding tokens.”

Stablecoin issuers are generally expected to hold a reserve equal to the number of tokens they issue, maintaining a 1-to-1 backing. According to Tether’s most recent report, the reserves now actually surpass the total supply of its dollar-backed stablecoin USDT, and the company’s total assets exceed its total liabilities as well.

Despite the recent turbulent market conditions, Tether’s financial standing remains strong and stable. Between April 2023 and June 2023, its profit exceeded $1bn – representing a 30% quarterly growth.

The Consolidated Reserves Report which was completed by BDO, an independent auditor and accounting firm showed that Tether’s reserves were liquid with 85% in cash and cash equivalents. It also revealed that the stablecoin issuer has $72.5bn in US treasury bills.

CTO lauds the team on latest achievement

Chief technology officer, Paolo Ardoino expressed a strong sense of pride and satisfaction regarding the report.

“I am immensely proud of our most recent reserves attestation, reaffirming our unwavering commitment to transparency,” he said.

He proceeded to praise the company’s unwavering dedication to transparency, highlighting its importance in the industry.

“Transparency is not just a buzzword for us; it is the cornerstone of our philosophy. We believe that open communication and strong financials foster trust and reliability, and this is what the global community deserves especially in a year devastated by many failures across the banking and crypto industry.”

Ardoino believes that Tether’s transparency through the attestation reports could set a precedent fot the crypto industry.

“By continuously improving our reserves attestation process, we aim to set new standards in the industry and inspire others to follow suit. As we move forward, we remain dedicated to embracing accountability, enhancing risk management and security, leading by example.”

The report couldn’t have been better timed and will undoubtedly raise the confidence of investors following USDT’s slight de-peg which caused an imbalance in the Curve3 pool. 

Tether has also made significant strides in its expansion efforts, recently integrating its leading stablecoin onto the Kava blockchain.