Tether has published its BDO attestation report for Q1 2023, highlighting several important achievements. As per the reports, the stablecoin issuer has net profit of approximately $1.5 billion for the first quarter of 2023 demonstrating the company’s revival.
Compared to the $960 million reported at the end of Q4 2022, Tether’s surplus reserves hit a record high of $2.44 billion in Q1. Since Tether is profitable, this cushion would likely keep expanding each quarter, reassuring investors by making Tether more resistant to price swings.
Since its inception, Tether has been focused on its mission to provide the cryptocurrency industry and the global population with a trusted peer-to-peer cash alternative. Tether’s attestations are integral to the company’s dedication to openness and stability.
After the first quarter, the stablecoin’s consolidated total assets were $81.8 billion, while its consolidated total liabilities were close to $79.4 billion. Tether’s reserves also consisted of Bitcoin, gold, overnight repo, and corporate bonds. It has $1.5 billion in Bitcoin, or virtual currency, and $3.3 billion in precious metals.
The stablecoin issuer keeps 85 percent of its portfolio in liquid assets such as cash and short-term deposits. The reserves hold four percent in gold and two percent in the form of Bitcoin.
Tether has highlighted reducing its reliance on pure bank deposits as a source of liquidity and utilizing the Repo market as an additional safeguard to maintain the necessary liquidity and achieve greater standards of protection for its users.
As of the end of the first quarter, Tether’s bank deposits were $481 million, down from $5.3 billion. Since Tether’s deposits are dispersed throughout multiple banks, the company’s vulnerability to counterparty risk is greatly diminished, especially in a bank failure.
