- Tether Holding’s excess reserves topped $3 billion in the second quarter of 2023.
- The majority of the profit was earned from the U.S. Treasury Bills that the firm held in its reserves.
- The stablecoin firm has posted an operational profit of over $1 billion for Q2 ‘2023.
Tether Holdings, the crypto giant behind the world’s largest stablecoin Tether USD (USDT), has posted an operational profit of more than $1 billion for the second quarter of 2023. The stablecoin firm’s consolidated assets exceeded its consolidated liabilities, increasing its excess reserves by $850 million.
Paolo Ardoino, the Chief Technology Officer of Tether took to Twitter earlier today to share the firm’s attestation report for Q2 ‘2023. Between April and June 2023, the stablecoin giant recorded an operational profit of over $1 billion, marking a 30% increase from the first quarter. The majority of the profit was attributed to the firm’s $72.5 billion exposure to U.S. Treasury Bills.
The attestation by auditing giant BDO Italia also reaffirmed the accuracy of Tether’s Consolidated Reserves Report, which laid out the holdings in the reserves that backed the USDT stablecoin. The firm also increased its excess reserves by $850 million, bringing the total to a whopping $3.2 billion as of June 30, 2023.
“While these excess reserves are part of Tether own shareholder equity and normally a company would distribute them as dividends, Tether prefers to keep a big portion of these profits on top of the reserves to make its stablecoins products even more resilient,” stated Tether CTO Paolo Ardoino.
Gabor Gurbacs, an advisor for Tether, highlighted that if the stablecoin firm were a nation, its $72.5 billion exposure to T-bills would make it the 22nd largest holder of U.S. Treasuries. This would put Tether ahead of countries like UAE, Australia, and Mexico.
Tether also revealed a share buyback worth $115 million, along with other investments in energy-related initiatives funded by the second quarter’s profits. As per the Consolidated Reserve Report, the USDT issuer total assets exceeded a whopping $86 billion.
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