Tether Holdings Limited has closed the first quarter of 2023 with impressive results, including $81.8 billion in consolidated total assets and $1.48 billion in net profit. These achievements have strengthened Tether’s reserves, with an increase in the token in the circulation of 20%, indicating that customers continue to trust the platform.
Increased Transparency In Tether’s Reserves Reporting
According to a blog post, BDO Italia, a top global accounting firm, has verified Tether’s Consolidated Reserves Report (CRR), which includes a breakdown of the assets held by the group as of March 31st.
The CRR provides more categories to increase transparency in Tether’s reserves reporting, such as Physical Gold, Overnight Repo, Corporate Bonds, and Bitcoin ownership.
The company holds 85% of its investments in cash, cash equivalents, and short-term deposits and mostly invests in US Treasury Bills. It aims to decrease reliance on bank deposits and increase security for users by using the Repo market.
The latest report highlights a 25% reduction in secured loans from 8.7% to 6.5% of the overall reserves, with the highest percentage of assets allocated in US Treasury Bills to date.
Around 4% and 2% of the total reserves are represented by Gold and Bitcoin, respectively. Furthermore, any newly issued tokens have either been invested in US Treasury bills or deposited in overnight Repo.
The company’s consolidated assets exceed its consolidated liabilities, with consolidated total liabilities amounting to $79,390,359,036, of which $79,372,401,626 relates to digital tokens issued.
The company is dedicated to maintaining transparency and regularly assesses the worldwide economic climate to safeguard its customers’ funds from high-risk situations, as per the blog post.
Paolo Ardoino, CTO of Tether, expressed the company’s excitement at the “tremendous success” achieved in Q1 2023, with reserves’ surplus reaching an all-time high of $2.44 billion.
Arduino also stated that Tether would continue to monitor the risk-adjusted return on all assets within its portfolio on an ongoing basis, making further changes as the overall economic environment changes and the market cycle progresses as part of its normal, ongoing risk management processes.
Looking ahead to Q2, Tether is optimistic and remains committed to transparency. By introducing new categories in the reserves’ breakdown in its quarterly report, the company aims to provide even greater transparency to its users.
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