Tether has issued a report that claims over $3.3 billion in excess reserves after an increase of $850 million at the end of Q2 2023.
Tether states that the assurance opinion was completed by BDO, which re-affirms Tether’s Consolidated Reserves Report (CRR), which breaks down the assets held by the Group as of June 30, 2023.
The CCR shares, for the first time, Tether’s holdings in Money Market Funds and US Treasuries.
Tether adds that reserves are from the company’s own profits.
Tether’s operational profits were reported at over $1 billion for the time period of April 2023 to June 2023, or a 30% increase quarter over quarter.
Tether said it is also commencing a share buyback of $115 million.
Tether spokesperson and CTO Paolo Ardoino said they are proud of their reserves and “unwavering commitment to transparency.”
“Transparency is not just a buzzword for us; it is the cornerstone of our philosophy. We believe that open communication and strong financials foster trust and reliability, and this is what the global community deserves especially in a year devastated by many failures across the banking and crypto industry. Our long-term goal has always been to drive innovation as a global player, pushing the boundaries of tech and imagination. By continuously improving our reserves attestation process, we aim to set new standards in the industry and inspire others to follow suit. As we move forward, we remain dedicated to embracing accountability, enhancing risk management and security, leading by example. With a firm focus on transparency, we aim to shape a future where every participant in the global financial ecosystem can confidently navigate a realm built on trust and innovation. That’s why in this quarter, Tether’s USD₮ token in circulation surpassed its previous all-time high.”
Tether has been criticized in the past due to allegations of lack of transparency and questionable practices. In March 2023, WSJ.com claimed that crypto companies behind Tether used falsified documents to get bank accounts. In 2022, the same publication questioned Tether’s viability in a collapsing crypto market.
Yet during the most recent banking crisis which stumbled due to fractional reserves, Tether has thrived – extending its lead against other stablecoin issuers.
Tether states that its reserves are “extremely liquid” with 85% held in cash or cash equivalents.
Tether reports the following as of 30 June 2023:
The Group’s consolidated total assets amount to at least US$ 86,499,251,218.
The Group’s consolidated total liabilities amount to US$ 83,200,775,340 of which US$ 83,178,020,411 relate to digital tokens issued.
The Group’s consolidated assets exceed its consolidated liabilities.
You can read the latest assurance opinion and the Consolidated Reserves Report here.