• Tether, the issuer of USDT, reported a $700 million profit in the last quarter of 2022.
• The company reinvested its profits back into reserves and ended the year with assets exceeding liabilities.
• Despite the crypto winter, Tether has proven to be resilient and stable during stress.
Tether Reports $700M Profit in Last Quarter
Tether, the issuer of the world’s largest centralized stablecoin USDT, has published its latest attestation report for the fourth quarter of 2022. The company announced on Thursday that it generated a $700 million profit last quarter and reinvested this amount back into its reserves. This is despite an extremely harsh year for crypto that saw digital asset prices plummet and multiple companies go bankrupt.
Reserves Exceed Liabilities
At the end of 2022, Tether held $67 billion in assets with liabilities of $66 billion, almost all of which relate to digital tokens issued. The firm also said it had no commercial paper in its reserves and ended 2022 with excess reserves of at least $960 million.
Proof Of Stability During Stress
Chief Technology Officer Paolo Ardoino stated that Tether was able to „smoothly execute over $21 billion dollars in redemptions during the chaotic events of the year“. He added that this shows how resilient Tether was during stress and how it was able to differentiate itself from bad actors within the industry.
Largest Stablecoin In Market
USDT is currently considered as one of world’s largest stablecoins with a market cap over $68 billion according to CoinGecko data. However some argue that Tether’s attestations cannot be trusted fully because they have yet to produce a viable audit of their financials.
Rebuilding Trust Within Crypto Industry
In spite of this lack of audit, Ardoino said that Tether is determined to continue setting a positive example for peers and competitors alike as well as being a „driving force“ in rebuilding trust within the crypto industry