- Tether racked up almost a billion in profits in the last quarter of 2022 despite the ongoing crypto winter.
- The company reinvested the profits back into its reserves.
- The company said that it ended the year with assets exceeding liabilities.
Tether, the issuer of the world’s largest centralized stablecoin USDT, has published its latest attestation report for the fourth quarter of the last year.
Tether announced on Thursday that it generated a $700 million profit last quarter. The company said that it had reinvested the profit back into its reserves.
On top of that, Tether said that it ended 2022 with excess reserves of at least $960 million. The firm holds $67 billion in assets with liabilities of $66 billion, almost all of which relate to digital tokens issued. Tether also said it has no commercial paper in its reserves.
Tether achieved these results despite an extremely harsh year for crypto that saw digital asset prices plummet and multiple companies like FTX, Celsius, and Terra Luna bankrupt.
Tether’s Chief Technology Officer Paolo Ardoino said that the company “set itself apart from the bad actors of the industry” by remaining resilient and stable during stress.
“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. Not only were we able to smoothly execute over $21 billion dollars in redemptions during the chaotic events of the year, but Tether has on the other side issued over $10 billion of USDT, an indication of continued organic growth and adoption of Tether.” Ardoino added that Tether is a “driving force” in crypto’s quest to regain trust within the industry.
“We are proud of how Tether has continued to be a driving force in rebuilding trust within the crypto industry and we are determined to continue to set a positive example for our peers and competitors alike.” USDT is the largest stablecoin in the market. Its market cap is currently over $68 billion, according to data from CoinGecko.
On the Flipside
- Some argue that Tether’s attestations cannot be trusted fully because the company has yet to produce a viable audit of its financials.
Why You Should Care
Tether is the issuer of the largest stablecoin, USDT. Seeing such an important industry player brave the crypto winter smoothly is encouraging. This sentiment was also echoed by Ethereum founder Vitalik Buterin a few months ago. At the same time, users should always be diligent before choosing what stablecoin to use.
You Might Also Like:
Circle’s $44.5B USDC Reserve Report: Major Holdings in US Bonds