The company Tether, issuer of the first stablecoin on the market, namely the USDT, does not seem to be affected by the effects of the bear market. In its quarterly report, we learn that Tether made $700 million in profits in the space of 3 months.
$7.5 million a day for Tether
While the bearish period we are going through is having a profound impact on companies in the cryptocurrency industry, forced to lay off their staff or even go out of business, the stablecoin market seems to be doing very well.
Tether Holdings Limited, issuer of the stablecoin USDT, reported quite impressive profits for the last quarter of 2022. On its own, the market’s first stablecoin brought in $700 million in profits in 3 months. That’s $7.5 million in profits every day.
This information was revealed to us in a statement from Tether, sharing an analysis report from an accounting firm. As of December 31, the firm held $67 billion in assets, of which $66 billion was the USDT offering.
“After a tumultuous end to 2022, Tether has once again proven its stability, resilience and ability to handle bear markets and black swans, setting itself apart from the bad performers in the industry. »
Regarding the unsecured USDT rumors that have been circulating for several years now, the report states that excess reserves amounted to at least $960 million – at least, at the time of the analysis.
? What is Tether (USDT) and how do I buy it?
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What insures USDT?
Unlike decentralized stablecoins, Tether’s USDT or Circle’s USDC are collateralized off the blockchain. This makes more difficult to monitor the guarantee of assets and collateralisation. Thus, the quarterly reports of these companies are important since they offer us an overview of this information at a given moment, confirmed by a company specializing in financial analysis.
The report tells us that 82% of what secures USDT was: $39.2 billion in US Treasuries$7 billion in money market funds or another $5 billion in cash and bank deposits.
The remaining 18% would be split between corporate bonds, precious metals ($3.4 billion) and secured loans ($5.8 billion).
However, it is important to note that these analyzes are not conventional because they are made by independent companies. Those are “certificates” allow to give and confirm a photo of the guarantees of the stablecoin at a defined moment. However, it is not a real “auditing” offering an analysis and a conclusion on the reliability, safety or associated risks.
For comparison, decentralized stablecoins, like MakerDAO’s DAI, are completely transparent. Anyone can perform their own audit on the blockchain and see at any time which assets are backing the stablecoin.
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Source: Tether press release
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