Tether reported a $700 million profit in the last quarter of 2022.
The USDT issuer no longer holds commercial paper in its reserves.
The latest attestation report from its auditor revealed that the firm’s assets exceeded its liabilities.
The majority of the assets that back USDT are held in United States Treasury Bills.
Tether, the firm behind the world’s largest stablecoin, posted a third-party attestation report earlier today. The attestation, which was carried out by accounting giant BDO, revealed that the USDT issuer’s assets exceeded its liabilities. With $67.04 billion in assets and $66.08 billion in liabilities, the firm’s excess reserves stood at $960 million.
Tether claims a $700 million profit, report has no mention of it
Tether CTO Paolo Ardoino claimed in a recent Twitter thread that the firm had a net profit of $700 million in the fourth quarter of 2022. However, the attestation report by BDO, which examined the firm’s reserves as of 31 December 2022, had no mention of the profit. Furthermore, the firm failed to specify how the nine-figure profit was realized.
After a tumultuous end to 2022, Tether has once again proven its stability, its resilience, and its ability to handle bear markets and black swan events, setting itself apart from the bad actors of the industry.”
CTO Paolo Ardoino
BDO’s report also revealed that Tether had brought down its exposure to commercial paper to zero. The USDT issuer had eliminated commercial paper from its reserves, in line with its commitment to get rid of its commercial paper holdings by the end of 2022, given that it was less stable than other debt instruments like U.S Treasury Bonds. At $39.2 billion, U.S Treasury Bills accounted for Tether’s largest holding. Cash and Bank Deposits increased by $271 million compared to the third quarter of 2022. Assets held in corporate bonds, futures, and precious metals went up by $250 million over the same period.