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    <p><a rel="noopener noreferrer nofollow" title="Tether" href="https://thebittimes.com/tag/tether.html">Tether</a>, the world’s largest stablecoin, has published its newest attestation, which claims that it’s making nearly $1 billion each quarter in returns from its reserves. This is apparently driven by the increase in rates for its large treasury holdings, with a claimed $56.6 billion in exposure to US treasuries.</p>
    <p>These claimed profits have allowed the company to perform the accounting trick of moving its secured <a rel="noopener noreferrer nofollow" title="loans" href="https://thebittimes.com/tag/loans.html">loans</a> to ‘excess reserves’ which <a rel="noopener noreferrer nofollow" title="Tether" href="https://thebittimes.com/tag/tether.html">Tether</a> seemingly believes are not part of the reserves, despite the name.</p>
    <p>In December of last year, <a rel="noopener noreferrer nofollow" title="Tether" href="https://thebittimes.com/tag/tether.html">Tether</a> stated that “throughout 2023, it will reduce secured <a rel="noopener noreferrer nofollow" title="loans" href="https://thebittimes.com/tag/loans.html">loans</a> in <a rel="noopener noreferrer nofollow" title="Tether" href="https://thebittimes.com/tag/tether.html">Tether</a>’s reserves to zero.”</p>
    <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://cdn.thebittimes.com/images/2023/11/01/38606bb7f4499ed9e19a0302d9a2a5b8.webp" alt class="wp-image-51010" srcset="https://cdn.thebittimes.com/images/2023/11/01/38606bb7f4499ed9e19a0302d9a2a5b8.webp 1024w, https://cdn.thebittimes.com/images/2023/11/01/38606bb7f4499ed9e19a0302d9a2a5b8.webp 300w, https://cdn.thebittimes.com/images/2023/11/01/38606bb7f4499ed9e19a0302d9a2a5b8.webp 768w, https://cdn.thebittimes.com/images/2023/11/01/38606bb7f4499ed9e19a0302d9a2a5b8.webp 1536w, https://cdn.thebittimes.com/images/2023/11/01/38606bb7f4499ed9e19a0302d9a2a5b8.webp 1200w, https://cdn.thebittimes.com/images/2023/11/01/38606bb7f4499ed9e19a0302d9a2a5b8.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
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    <p><em>Read more: Tether executives have brushed shoulders with crime since its inception</em></p>
    <p>Tether’s description of its reserves now attempts to exclude secured loans it’s still engaged in by reclassifying them as ‘excess reserves,’ <strong>allowing it to maintain billions in secured loans</strong> while claiming it’s reducing exposure to zero. A recent Tether blog post includes a ‘Consolidated Reserves Forecast’ for today, which shows $4.3 billion in its loans being moved to ‘excess reserves,’ which according to Tether, is not part of its reserves.</p>
    <p>A Wall Street Journal article quoted Alex Welch, who it claimed was a Tether spokesperson, as saying that Tether had continued the program due to “short-term loan requests from clients.” This prompted the company’s chief technology officer Paolo Ardoino to disclaim both the reporting and Welch via social media.</p>
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      <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
       <p lang="en" dir="ltr">The person that WSJ cites in its article is not a Tether spokeperson nor works at Tether, as that person repeatedly said in her correspondence with the tabloid. Pure bullies. Not unexpected from them tho.<br><br>Bloomberg as always publishes articles based on unconfirmed information -…</p>— Paolo Ardoino (@paoloardoino) September 22, 2023
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    <p>Outside of maintaining these billions in secured loans, Tether has been a very active investor recently, with deals in energy, artificial intelligence,&nbsp; staking, mining, and more. Tether also claims, “<strong>These investments are not considered part of the reserves backing the issued token</strong>.”</p>
    <p><em>Quotes in bold are our emphasis.</em>&nbsp;<em>Got a tip? Send us an email or ProtonMail. For more informed news, follow us on&nbsp;X,&nbsp;</em><em>Instagram</em><em>,&nbsp;</em><em>Bluesky</em><em>, and&nbsp;</em><em>Google News</em><em>, or subscribe to our&nbsp;</em><em>YouTube</em><em>&nbsp;channel.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/tether-says-it-makes-money-but-can-t-ditch-loans-tbt68570.html">https://thebittimes.com/tether-says-it-makes-money-but-can-t-ditch-loans-tbt68570.html</a></p>

Tether says it makes money but can't ditch loans

TheBitTimes

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