Tether, the issuer of popular stablecoin USDT, has reported a record high in its Q3 reserves of $86.4 billion, according to an attestation signed off by BDO Italy. This marks an increase over the company's liabilities of $83.2 billion, resulting in an excess of $3.2 billion. The company's reserve assets include U.S. Treasuries, direct T-bill investments, repurchase agreements, and money market fund deposits.
As part of this growth, Tether has reduced its secured loans to $5.2 billion, realizing a quarter-over-quarter reduction of $330 million. This aligns with the firm's December 2022 pledge to eliminate loans by 2023.
The company's issuance of USDT and other digital currencies tied to fiat and gold has resulted in a market cap of $84 billion, leading to its popularity among stablecoins. The business has proven profitable, yielding nearly $1 billion in quarterly returns due to high-interest rates.
Newly appointed CEO Paolo Ardoino announced on Twitter that approximately 85.7% of Tether's total reserves are in cash and cash equivalents, generating roughly $1 billion in returns. These reserves comprise $56.6 billion in short-term U.S. Treasury bills, $8.8 billion in reverse repurchase agreements tied to these bills, and $8.2 billion in U.S. Money Market funds pegged to $1 per note. In addition, Tether holds an extra $292 million in cash and bank deposits and $65 million in non-U.S. treasury bills.
Tether is also planning to wind down an additional $1.1 billion in loans by today (Tuesday), leaving only $900 million in loans as part of its reserves.
In response to the growing adoption of USDT in Brazil, Tether plans to introduce real-time audit reports in 2024. Meanwhile, BDO will continue its quarterly attestations with a one-month delay. This commitment to transparency is part of Tether's ongoing efforts to provide real-time reserve data in the coming years.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.