Tether claims that $700 million in profit increased cryptocurrency reserves.
By CoinUnited
More than $700 million in "net profit" was added to the reserve that backs the world's most traded stablecoin asset in the fourth quarter, according to Tether Holdings Ltd, the company behind the largest stablecoin.
The net profit was not included in an attestation of Tether's reserves done by accounting firm BDO Italia on February 9. Tether has not previously defined its financial results. Attestations by third parties are not the same as financial audits since they only provide a snapshot in time and do not provide auditors access to all of the books and records of a corporation.
Tether owned around 82% of the $67 billion in assets supporting its stablecoin USDT in cash and cash-equivalents, according to the most recent attestation, which examined Tether's reserves as of December 31 of last year. Stablecoins are digital currencies pegged to a stable asset like the US dollar in an effort to reduce price fluctuations. This is accomplished by keeping huge reserves as separate collateral.
After the $40 billion collapse of TerraUSD, which leveraged algorithmic incentives alongside its sister token LUNA to keep afloat, in 2022, the assets and techniques used to underpin stablecoins like Tether's USDT came under investigation. Others, including Circle Internet Financial Ltd., have moved to offer reserve attestations on a monthly basis as regulators have pushed for greater transparency from stablecoin issuers.
As US interest rates rose in 2022, Tether's reserve, which totaled over $39.2 billion, became increasingly attractive as an asset held by stablecoin operators' reserves. Similar to the previous quarter, that number remained rather stable. Tether would net around $1.8 billion from such assets at the current rate of 4.67%.
Holdings in money market funds increased by 3.8% quarterly over the previous quarter to $7.4 billion, while cash and bank deposits decreased by 12% to $5.3 billion. As the value of the USDT rose in circulation, the country's total reserves fell by 1.6%.
After it was revealed that Tether had loaned assets to defunct crypto lender Celsius last year, the practice of Tether listing about 8.7% of its reserves in secured loans to non-affiliated businesses came under investigation. In December, management announced that they will begin phasing out these operations by 2023.
Tether owned around 82% of the $67 billion in assets supporting its stablecoin USDT in cash and cash-equivalents, according to the most recent attestation, which examined Tether's reserves as of December 31 of last year. Stablecoins are digital currencies pegged to a stable asset like the US dollar in an effort to reduce price fluctuations. This is accomplished by keeping huge reserves as separate collateral.
After the $40 billion collapse of TerraUSD, which leveraged algorithmic incentives alongside its sister token LUNA to keep afloat, in 2022, the assets and techniques used to underpin stablecoins like Tether's USDT came under investigation. Others, including Circle Internet Financial Ltd., have moved to offer reserve attestations on a monthly basis as regulators have pushed for greater transparency from stablecoin issuers.
As US interest rates rose in 2022, Tether's reserve, which totaled over $39.2 billion, became increasingly attractive as an asset held by stablecoin operators' reserves. Similar to the previous quarter, that number remained rather stable. Tether would net around $1.8 billion from such assets at the current rate of 4.67%.
Holdings in money market funds increased by 3.8% quarterly over the previous quarter to $7.4 billion, while cash and bank deposits decreased by 12% to $5.3 billion. As the value of the USDT rose in circulation, the country's total reserves fell by 1.6%.
After it was revealed that Tether had loaned assets to defunct crypto lender Celsius last year, the practice of Tether listing about 8.7% of its reserves in secured loans to non-affiliated businesses came under investigation. In December, management announced that they will begin phasing out these operations by 2023.
The net profit was not included in an attestation of Tether's reserves done by accounting firm BDO Italia on February 9. Tether has not previously defined its financial results. Attestations by third parties are not the same as financial audits since they only provide a snapshot in time and do not provide auditors access to all of the books and records of a corporation.
Tether owned around 82% of the $67 billion in assets supporting its stablecoin USDT in cash and cash-equivalents, according to the most recent attestation, which examined Tether's reserves as of December 31 of last year. Stablecoins are digital currencies pegged to a stable asset like the US dollar in an effort to reduce price fluctuations. This is accomplished by keeping huge reserves as separate collateral.
After the $40 billion collapse of TerraUSD, which leveraged algorithmic incentives alongside its sister token LUNA to keep afloat, in 2022, the assets and techniques used to underpin stablecoins like Tether's USDT came under investigation. Others, including Circle Internet Financial Ltd., have moved to offer reserve attestations on a monthly basis as regulators have pushed for greater transparency from stablecoin issuers.
As US interest rates rose in 2022, Tether's reserve, which totaled over $39.2 billion, became increasingly attractive as an asset held by stablecoin operators' reserves. Similar to the previous quarter, that number remained rather stable. Tether would net around $1.8 billion from such assets at the current rate of 4.67%.
Holdings in money market funds increased by 3.8% quarterly over the previous quarter to $7.4 billion, while cash and bank deposits decreased by 12% to $5.3 billion. As the value of the USDT rose in circulation, the country's total reserves fell by 1.6%.
After it was revealed that Tether had loaned assets to defunct crypto lender Celsius last year, the practice of Tether listing about 8.7% of its reserves in secured loans to non-affiliated businesses came under investigation. In December, management announced that they will begin phasing out these operations by 2023.
Tether owned around 82% of the $67 billion in assets supporting its stablecoin USDT in cash and cash-equivalents, according to the most recent attestation, which examined Tether's reserves as of December 31 of last year. Stablecoins are digital currencies pegged to a stable asset like the US dollar in an effort to reduce price fluctuations. This is accomplished by keeping huge reserves as separate collateral.
After the $40 billion collapse of TerraUSD, which leveraged algorithmic incentives alongside its sister token LUNA to keep afloat, in 2022, the assets and techniques used to underpin stablecoins like Tether's USDT came under investigation. Others, including Circle Internet Financial Ltd., have moved to offer reserve attestations on a monthly basis as regulators have pushed for greater transparency from stablecoin issuers.
As US interest rates rose in 2022, Tether's reserve, which totaled over $39.2 billion, became increasingly attractive as an asset held by stablecoin operators' reserves. Similar to the previous quarter, that number remained rather stable. Tether would net around $1.8 billion from such assets at the current rate of 4.67%.
Holdings in money market funds increased by 3.8% quarterly over the previous quarter to $7.4 billion, while cash and bank deposits decreased by 12% to $5.3 billion. As the value of the USDT rose in circulation, the country's total reserves fell by 1.6%.
After it was revealed that Tether had loaned assets to defunct crypto lender Celsius last year, the practice of Tether listing about 8.7% of its reserves in secured loans to non-affiliated businesses came under investigation. In December, management announced that they will begin phasing out these operations by 2023.
Latest Articles
See All Articles>>