Hassan Maishera
TL;DR
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Tether posted a record-breaking net profit in the last quarter of 2023.
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The profit was mostly due to earnings from U.S. Treasury securities.
Tether Records Highest-ever Quarterly Profit
Tether Holdings Limited, the company behind the stablecoin Tether (USDT), generated a record-breaking net profit in the fourth quarter of 2023. According to the company’s blog post, most of the profit is due to Treasury interest and a strong performance from other assets.
The attestation report, which was published on January 31st, revealed that Tether recorded a net profit of $2.85 billion in the fourth quarter of 2023. The profit included $1 billion in net interest from U.S. Treasury securities. Furthermore, Gold and Bitcoin reserves contributed to the remaining balance.
For the 2023 fiscal year, the stablecoin issuer disclosed a total net profit of $6.2 billion, with $4 billion being generated by U.S. Treasury bonds and other non-crypto investments.
In assets under management, Tether now holds $80.3 billion in U.S. Treasurys, $2.8 billion in Bitcoin, $3.5 billion in gold, and $1.5 billion in venture capital investments.
“At year end, the outstanding secured loans, which are collateralized by highly liquid assets as confirmed in the BDO attestation, are fully covered by the undistributed accumulated profits known as excess reserves ($4.8 billion in secured loans versus $5.4 billion of excess reserves),” Tether added.
The 2022 bear market saw several cryptocurrency companies file for bankruptcy. However, Tether continues to maintain its position as the leading stablecoin issuer in the crypto space.
The company backed its stablecoin with higher-quality assets, such as T-bills and gold reserves. In September last year, Tether claimed to be one of the leading buyers of US Treasury bills in the world.
Tether’s USDT is the leading stablecoin in the crypto space and currently has more than 70% share of the stablecoin market.
