Breaking: Tether Reports $700 Mn Profit In Q4, Eliminates Commercial Paper Exposure
Tether Holdings Limited, issuer of the world’s largest stablecoin USDT, on Thursday reported a $700 million profit made in the fourth quarter, as per its latest attestation report. The consolidated assets exceed its consolidated liabilities.
Stablecoin issuer Tether ended the year with zero commercial paper and at least $67 billion in consolidated total assets and excess reserves of at least $960 million. In addition, it also reduced its secured loans as promised before the end of the year and continues to work on the reduction of secured loans throughout 2023.
Paolo Ardoino, CTO of Tether, in a series of tweets on February 9 said the company has demonstrated a superior approach to risk management. It has helped the stablecoin issuer to maintain its leadership while consolidating profits.
“Not only were we able to smoothly execute over $21 billion dollars in redemptions during the chaotic events of the year, but Tether has on the other side issued over $10 billion of USDT, an indication of continued organic growth and adoption of Tether.”
The assurance report completed by BDO, a top five-ranked global independent public accounting firm, reveals consolidated total liabilities of over $66 billion, with 99.9% accounting for digital tokens issued.
Tether’s reserves remain liquid, with the majority held in cash, cash equivalents, and other short-term deposits. The direct exposure of US Treasury Bills jumps to over 58%, the highest percentage to date.
Paolo Ardoino also revealed that Tether is investing more in education, especially in emerging markets. The aim is to explain the huge difference between building for financial evolution vs speculation.
Market Cap of USDT Recovering
The market cap of USDT fell from $80 billion to $65.3 billion in November. However, the market cap has increased since December as Tether commits to reducing commercial paper exposure and secured loans.
Currently, USDT’s market cap is 68.19 billion. The recovery in the crypto market in January was supported by increased USDT transactions, helping recover the USDT market cap. Meanwhile, USD Coin (USDC) market cap has fallen to $41.5 billion.
Also Read: Bitcoin Price Fails To Price-In “Golden Cross”, Is Fall To $20K Next?
- Expert Explains Pi Network–Sign Meeting, Says It Could Trigger Binance Listing
- Is Trump Family, Mr. Beast Buying ASTER Token? Rumors Gain Strength
- Solana ETF Update: Grayscale, Fidelity, Others Files S-1 With Staking, Approval Expected in Two Weeks
- Cyber Hornet Seeks SEC Nod for S&P 500 and XRP ETF
- Cathie Wood’s Ark Invest Eyes Stake in Tether as USDT Issuer Targets $500B Valuation
- Solana Price Set for Q4 Surge as Canary Capital ETF Filing Meets Wyckoff Accumulation
- Avalanche Price Could Surge to $50 as Transactions Jump 200%
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Ethereum (ETH) Price Set for a rebound as Whales Accumulate $1.6B ETH and Outflows Hit $622M
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
