Tether's Reserves Shine in Q2 Report

Tether’s excess reserves increase by $850 million in Q2, further bolstering confidence in the stablecoin
Colin Aulds
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Colin Aulds is a founder at 10NetZero, a off-grid Bitcoin mining company. He is also the former VP and founder at Billfodl, a Bitcoin wallet backup company, as well as PrivacyPros.io, a blog dedicated to helping every day people increase their privacy online. He earned his Bachelor of Business Administration from Belmont University in 2011.

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      September 27, 2023

Tether's Reserves Shine in Q2 Report

Tether Holdings Limited has released its assurance opinion for Q2 of 2023, validated by BDO, a globally recognized independent public accounting firm. The attestation gives weight to the Consolidated Reserves Report (CRR), detailing Tether’s assets as of June 30, 2023, and signifying another solid step towards transparency.

Key Takeaways

  • Tether's Q2 2023 assurance opinion shows excess reserves of $3.3B, boosting its stability.
  • Operational profits rose 30% to $1B in Q2; the company bought back $115M in shares and invested in energy projects.
  • Tether holds 85% of its investments in cash and equivalents, with $72.5B exposure to US Treasuries, marking financial stability.

Notably, the CRR reveals an increase in Tether’s excess reserves of about $850 million, taking the total to roughly $3.3 billion at the end of Q2. This adds to the stability of Tether, a welcome move in the current industry climate marked by often heavily undercollateralized players.

Tether’s impressive operational profits for April to June 2023 exceeded $1 billion, a significant 30% hike from the previous quarter. Moreover, a share buyback worth 115 million USD has been made, and investments in energy-related initiatives have been financed from this quarter’s profits.

A standout feature of the report is Tether’s high liquidity, with 85% of investments held in cash and equivalents. In a move that goes beyond mere compliance, Tether has also disclosed its indirect exposure to US Treasuries, amounting to about $72.5 billion. The CRR and BDO’s independent attestation confirm that Tether’s consolidated assets once again surpass its consolidated liabilities, with total assets amounting to at least $86.5 billion, and total liabilities amounting to $83.2 billion.

Paolo Ardoino, CTO of Tether, expressed immense pride in the reserves attestation, stating, “Transparency is not just a buzzword for us; it is the cornerstone of our philosophy. […] By continuously improving our reserves attestation process, we aim to set new standards in the industry and inspire others to follow suit.” He emphasized the company’s commitment to driving innovation, accountability, and transparency, particularly in a year marked by challenges in the banking and crypto industry.

Tether’s latest report serves as a strong statement of financial stability and a demonstration of the importance of responsible risk management, reinforcing the company’s position as a leader in the industry.

Article Sources

BuyBitcoinWorldWide writers are subject-matter experts and base their articles on firsthand information, like interviews with experts, white papers or original studies and experience. We also use trusted research and studies from other well-known sources. You can learn more about our editorial guidelines.

  1. Tether - Tether Excess Reserves increase by $850M to reach $3.3B as Leading Stablecoin Reveals $72.5B overall exposure in US T-Bills and Unveils Energy-Related Investments, https://tether.to/en/tether-excess-reserves-increase-by-850m-to-reach-3-3b-as-leading-stablecoin-reveals-72-5b-overall-exposure-in-us-t-bills-and-unveils-energy-related-investments/
  2. Reuters - Stablecoin Tether's reserves hit record $86.5 billion in second quarter, https://www.reuters.com/technology/stablecoin-tethers-reserves-hit-record-865-bln-q2-2023-07-31/
  3. Forbes - Tether’s Billions Are Growing Fast, But Its Reported Profits Seem To Be Shrinking, https://www.forbes.com/sites/digital-assets/2023/08/07/tethers-billions-are-growing-fast-but-its-reported-profits-seem-to-be-shrinking/?sh=41dab95a7470

About the Author

colin aulds

Colin Aulds is a founder at 10NetZero, an off-grid Bitcoin mining company. He is the former VP and founder at Billfodl, a Bitcoin wallet backup company, as well as PrivacyPros, a blog dedicated to helping every day people improve their privacy. He also runs the popular Unhashed Podcast. Colin holds a bachelors degree from Belmont University (BBA).