Tether Holdings Limited has published its Q1 2023 Assurance Report, highlighting strong financial performance and increased transparency. The report was completed by BDO Italia, a top global independent public accounting firm, which reaffirmed the accuracy of Tether’s Consolidated Reserves Report (CRR).
Tether CTO Paolo Ardoino announced the company’s achievements on Twitter, including a Q1 2023 net profit of $1.48 billion, resulting in a surplus over reserves of $2.44 billion, an all-time high. Ardoino also mentioned new categories for Bitcoin and Gold holdings in the CRR, now accounting for 2% and 4% of total reserves, respectively.
According to the CRR, Tether closed Q1 2023 with $81.8 billion in consolidated total assets, primarily invested in US Treasury Bills. Direct holdings reached over $53 billion, representing more than 64% of total reserves. The company reduced reliance on bank deposits and leveraged the Repo market to maintain liquidity and ensure higher standards of protection for users.
In an official statement, Adoino discussed the future direction of the stablecoin issuer, stating:
Looking ahead to Q2, we have an extremely positive outlook and remain committed to transparency, which is why we have introduced new categories in the reserves’ breakdown in our quarterly report to provide even greater transparency to our users.
The report concluded that Tether’s reserves remain highly liquid, with approximately 85% of investments held in cash, cash equivalents, and other short-term deposits. It also highlighted a 25% reduction in secured loans, from 8.7% to 6.5% of total reserves, adding that all new token issuances in Q1 2023 were invested in US Treasury Bills or placed in overnight reverse repo facilities, with $7.5 billion now directly invested in these facilities.
