Stablecoin

2024

Giant

Billion

Stablecoin issuer Tether, a prominent player in the cryptocurrency market behind the widely used USDT stablecoin, has released its audit statement for the first quarter of 2024, accompanied by a report conducted by independent accounting firm BDO.&nbsp; 
The <a href="https://tether.io/news/tether-releases-q1-2024-attestation-reports-record-breaking-4-52-billion-profit-highest-treasury-bill-ownership-percentage-ever-total-group-equity-of-11-37-billion/" target="_blank" rel="noopener nofollow">report</a>, which provides additional financial information beyond the reserves backing Tether’s fiat-denominated stablecoins, shows the company’s profit for the first quarter of the year, which saw an increased influx of capital into the market.&nbsp; 
<h2 id="tether-q1-2024-financials-soar">Tether Q1 2024 Financials Soar</h2> 
Digging into the numbers, the first quarter of 2024 proved highly profitable for Tether, with a net profit of $4.52 billion.&nbsp; 
The main contributors, the entities responsible for issuing stablecoins and managing reserves, reportedly generated approximately $1 billion of this profit from net operating gains, primarily from <a href="https://www.newsbtc.com/news/bitcoin/tether-buys-8888-bitcoin/" target="_blank" rel="noopener ">US Treasury holdings</a>. The remaining profits were attributable to mark-to-market gains on Bitcoin (BTC) and gold positions. 
The report also highlighted Tether’s success in increasing its direct and indirect holdings of US Treasuries to over $90 billion. This includes indirect exposure through overnight reverse repurchase agreements collateralized by US Treasuries and investments in US Treasuries through <a href="https://www.newsbtc.com/news/bitcoin/bitcoin-usdt-tether-8888-btc/" target="_blank" rel="noopener ">money market funds</a>. 
<img loading="lazy" decoding="async" class="wp-image-606050 size-large" src="https://www.newsbtc.com/wp-content/uploads/2024/05/Cash-Cash-Equivalents-US-treasuries-Direct-Indirect-VS.-Total-Tether-Tokens-6.png?w=860&amp;resize=860%2C546" alt="Tether" width="860" height="546" srcset="https://www.newsbtc.com/wp-content/uploads/2024/05/Cash-Cash-Equivalents-US-treasuries-Direct-Indirect-VS.-Total-Tether-Tokens-6.png?w=1600 1600w, https://www.newsbtc.com/wp-content/uploads/2024/05/Cash-Cash-Equivalents-US-treasuries-Direct-Indirect-VS.-Total-Tether-Tokens-6.png?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/05/Cash-Cash-Equivalents-US-treasuries-Direct-Indirect-VS.-Total-Tether-Tokens-6.png?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/05/Cash-Cash-Equivalents-US-treasuries-Direct-Indirect-VS.-Total-Tether-Tokens-6.png?w=860&amp;resize=860%2C546 860w, https://www.newsbtc.com/wp-content/uploads/2024/05/Cash-Cash-Equivalents-US-treasuries-Direct-Indirect-VS.-Total-Tether-Tokens-6.png?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/05/Cash-Cash-Equivalents-US-treasuries-Direct-Indirect-VS.-Total-Tether-Tokens-6.png?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/05/Cash-Cash-Equivalents-US-treasuries-Direct-Indirect-VS.-Total-Tether-Tokens-6.png?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
In a sign of significant growth, Tether also disclosed its net equity for the first time, revealing a figure of $11.37 billion as of March 31, 2024. This is an increase from the $7.01 billion equity reported as of December 31, 2023.&nbsp; 
The report also highlighted a $1 billion increase in excess <a href="https://www.newsbtc.com/news/stablecoin-takeover-record-tether-71-dominance-raises-questions-about-crypto-future/" target="_blank" rel="noopener ">reserves</a>, which support the company’s stablecoin offerings, bringing the total to nearly $6.3 billion. 
<h2 id="ceo-emphasizes-transparency-and-stability">CEO Emphasizes Transparency And Stability</h2> 
The BDO confirmation reiterated that Tether-issued tokens are 90% backed by cash and cash equivalents, underscoring the company’s stance on maintaining liquidity within the stablecoin ecosystem. Furthermore, the report revealed that over $12.5 billion worth of USDT was issued in the first quarter alone. 
Tether Group’s strategic investments, which exceed $5 billion as of the report date, span various sectors, including <a href="https://www.newsbtc.com/tether/tether-launches-new-security-policy-freezes-41-sanctioned-wallets/" target="_blank" rel="noopener ">artificial intelligence</a> (AI) and data, renewable energy, person-to-person (P2P) communication, and Bitcoin Mining.&nbsp; 
In response to the latest report, Paolo Ardoino, CEO of Tether, expressed the company’s commitment to transparency, stability, liquidity, and responsible risk management.&nbsp; 
Ardoino highlighted Tether’s record-breaking profit benchmark of $4.52 billion and the company’s efforts to increase <a href="https://www.newsbtc.com/bitcoin-news/tether-usdt-cap-90-billion-why-affects-bitcoin/" target="_blank" rel="noopener ">transparency </a>and trust within the cryptocurrency industry. Ardoino further claimed: 
<blockquote>
 In reporting not just the composition of our reserves, but now the Group’s net equity of $11.37 billion, Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust.&nbsp;
</blockquote> 
<img loading="lazy" decoding="async" class="size-large" src="https://www.tradingview.com/x/mivDaZsR/" alt="Tether " width="1815" height="858"> 
Featured image from Shutterstock, chart from TradingView.com

Stablecoin Giant Tether Strikes Gold: Achieves Record Net Profit Of $4.5 Billion In Q1

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