Stablecoin giant Tether recorded an operational profit of more than $1 billion in the second quarter of 2023
The USDT issuer’s consolidated assets exceed its consolidated losses, leaving an excess reserve of $3.3 billion.
Most of the stablecoin firm’s profits came from interests on the Treasury bills held in its reserves.
The USDT issuer had an overall exposure of $72.5 billion to U.S. T-bills at the end of Q2 ‘2023.
Tether Holdings published its attestation for the second quarter of 2023 earlier today. The report showed that the USDT issuer recorded a profit of more than $1 billion between April 2023 and June 2023, marking a quarter-over-quarter (QoQ) increase of 30%. The attestation was carried out by public accounting firm BDO Italia, which also compiled the stablecoin giant’s Consolidated Reserves Report.
Tether’s Excess Reserves Topped $3.3 Billion In Q2 ‘2023
Tether CEO Paolo Ardoino took to Twitter earlier today to share the latest attestation report. As per the report, the majority of the stablecoin firm’s operational profit came from interest on the T-bills it held in the reserves that backed its USDT stablecoin. The USDT issuer’s overall exposure to U.S. T-bills was $72.5 billion as of June 30, 2023.
The stablecoin giant also revealed an excess in its reserve amounting to $850 million, which brought its total excess reserves to roughly $3.3 billion at the end of the second quarter. According to the USDT issuer, the excess acted as a counterbalance and ensured more protection for users.
While these excess reserves are part of Tether’s 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.”
Paolo Ardoino, Chief Technology Officer at Tether Holdings Limited
As per the Consolidated Reserves Report, Tether’s total assets amounted to $86.4 billion as of June 30, 2023. In addition to the revenue, the USDT issuer also disclosed a share buyback of $115 million that was made to consolidate the shareholder group. The profits earned in the second quarter were also used to finance other energy related-ventures.