Leading stablecoin issuer Tether has released its 2022 fourth quarter attestation report, showing a net profit of approximately $700 million, which will be added to the company reserves, according to Tether. The latest report was audited by BDO Italia, one of the world’s largest public accounting organizations.
$960M in Excess Reserves
The report shows that Tether’s consolidated assets exceed its consolidated liabilities. Tether’s consolidated total assets amount to at least $67.04 billion, while its consolidated total liabilities amount to $66.08 billion, resulting in $960 million in excess reserves.
“With the presentation of this latest consolidated reserve report, Tether continues to deliver on our promise to lead the industry in transparency. After a tumultuous end to 2022, Tether has once again proven its stability, its resilience and its ability to handle bear markets and black swan events, setting itself apart from the bad actors of the industry,” Paolo Ardoino, CTO of Tether, said.
$300M Reduction in Secured Loans
In 2022, Tether said it intends to reduce secured loans in its reserves to zero this year following a report by the Wall Street Journal (WSJ) that the company’s rising loan risk put it at risk of not having “enough liquid assets to pay redemptions in a crisis.” According to the latest report, Tether has reduced its secured loans by $300 million.
“Not only were we able to smoothly execute over $21 billion dollars in redemptions during the chaotic events of the year, but Tether has on the other side issued over $10 billion of USD₮, an indication of continued organic growth and adoption of Tether,” Ardoino stated.
The stablecoin issuer reduced commercial papers on its reserves to zero last year. The company said its reserves remain liquid, with a “majority of its investments being held in cash, cash equivalents, and other short-term deposits.”
Tether’s USDT is the world’s largest stablecoin and third-largest crypto asset, with a market cap of $68.20 billion, according to CoinMarketCap. Last month, the leading crypto exchange CryptoCom delisted USDT for its Canadian customers due to regulatory concerns.
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