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Stablecoin issuer Tether (<a href="https://cryptoslate.com/coins/tether/">USDT</a>) said it holds $1.5 billion worth of Bitcoin (<a href="https://cryptoslate.com/coins/bitcoin/">BTC</a>) in its reserves — equating to 2% of its total reserves.
The stablecoin issuer further revealed that it held $3.39 billion in precious metals like gold. This accounts for 4% of its total reserves.
A further breakdown of the reserves &#8211; provided by the company for the first time &#8211; showed the company had its reserves in overnight repo and corporate bond allocations.
Tether said the majority of its investments, about 85%, are being held in cash, cash equivalents, and other short-term deposits.
<figure id="attachment_324123" aria-describedby="caption-attachment-324123" style="width: 775px" class="wp-caption aligncenter"><img class="size-full wp-image-324123" src="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-10-165645.jpg" alt="Tether Reserves" width="775" height="739" srcset="https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-10-165645.jpg 775w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-10-165645-300x286.jpg 300w, https://cryptoslate.com/wp-content/uploads/2023/05/Screenshot-2023-05-10-165645-768x732.jpg 768w" sizes="(max-width: 775px) 100vw, 775px" /><figcaption id="caption-attachment-324123" class="wp-caption-text">Source: Tether Attestation</figcaption></figure>
<h2 id="net-profit-of-1-48-billion">Net profit of $1.48 billion</h2>
In its latest Q1 2023 <a href="https://tether.to/en/tethers-latest-q1-2023-assurance-report-shows-reserves-surplus-at-all-time-high-of-244b-up-148b-in-net-profit-new-categories-for-additional-transparency-reveals-bitcoin-and-gold-allocations/">attestation</a>, Tether reported a net profit of $1.48 billion, adding that its excess reserves reached an all-time high of $2.44 billion — up from the $1.48 billion recorded in the last quarter of 2022.
Speaking on this milestone, Tether&#8217;s CTO Paolo Ardoino said the growth in its reserves and profit reflected the company&#8217;s &#8220;strength and stability.&#8221;
Ardoino added:
<blockquote>&#8220;We continue to monitor the risk-adjusted return on all assets within our portfolio on an ongoing basis and expect to make further changes as the overall economic environment changes and the market cycle progresses as a part of our normal, ongoing risk management processes.&#8221;</blockquote>
<h2 id="assets-exceed-liabilities">Assets exceed liabilities</h2>
According to the <a href="https://tether.to/en/tethers-latest-q1-2023-assurance-report-shows-reserves-surplus-at-all-time-high-of-244b-up-148b-in-net-profit-new-categories-for-additional-transparency-reveals-bitcoin-and-gold-allocations/">report</a>, Tether&#8217;s consolidated total asset at the end of 2023 Q1 was $81.8 billion, with the majority in U.S. Treasury Bills. It reported its total liabilities as of May 9, 2023, to be $79.39 billion, of which $79.37 billion were related to the digital tokens it issued.
Meanwhile, the company claims it is now working to reduce its dependence on pure bank deposits for liquidity by leveraging &#8220;the Repo market as an additional measure to ensure higher standards of protection for its users by maintaining the required liquidity.&#8221;
Ardoino said:
<blockquote>&#8220;Tether continues to evaluate the global economic environment and has taken necessary steps to ensure that its customers&#8217; funds are not exposed to high-risk scenarios.&#8221;</blockquote>
The company reported $481 million in cash and bank deposits.
Despite criticisms, USDT <a href="https://cryptoslate.com/lebanon-locals-are-turning-to-bitcoin-tether-amidst-an-economic-crisis/">adoption</a> has <a href="https://cryptoslate.com/tethers-circulating-supply-reaches-10-month-high-of-74b/">increased</a> following the recent regulatory troubles batting its major rivals, USD Coin (USDC) and Binance USD (BUSD).
USDT&#8217;s circulating supply sits at $82.54 billion as of press time, according to CryptoSlate data.
The post <a rel="nofollow" href="https://cryptoslate.com/tether-attestation-shows-it-has-1-5b-worth-of-bitcoin-in-reserves/">Tether attestation shows $1.5B worth of Bitcoin in reserves</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Tether attestation shows $1.5B worth of Bitcoin in reserves

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