All news is rigorously fact-checked and reviewed by leading blockchain experts and seasoned industry insiders.
- Tether reported that its consolidated total assets including precious metals, Bitcoin, and investments outpaced its liabilities by the end of 2023 Q2.
- The company increased its excess reserves by $850 million in Q2, thus bringing its total excess reserves to about $3.3 billion.
In a bid to reaffirm its market dominance and reassure transparency to users, Tether Limited Inc., a sister digital asset company to Bitfinex crypto exchange, released its second-quarter results on July 31. During the second quarter that ended in June, Tether announced an operational profit of more than $1 billion, which reciprocated to a spike of 30 percent quarter over quarter. As a result, Tether announced that it increased its excess reserves by about $850 million, hence bringing its total excess reserves to approximately $3.3 billion by the end of the second quarter.
Notably, Tether announced that its collection of stablecoins – including USD₮, EUR₮, CNH₮, XAU₮, MXN₮ – have significantly increased in trading volume amid mainstream cryptocurrency adoption. According to the latest crypto price oracles, Tether’s USDT had the largest daily traded volume of about $15.4 billion closely followed by Bitcoin with $13.1 billion.
Closer Look at Tether Q2 Financial Statements
In terms of assets, the company announced that it held United States Treasury Bills of about $55.8 billion, overnight reserve purchase agreements of about $8.89 billion, money market funds of about $8.1 billion, cash and bank deposits of around $90 million, among other cash and cash equivalent and short term deposits, which totaled to approximately $73.56 billion.
Other notable assets announced by Tether include corporate bonds of around $115 million, precious metals of about $3.27 billion, Bitcoins of about $1.67 billion, secured loans of about $5.5 billion, and other investments of about $2.36 billion. As a result, Tether had a total of $86.499 billion in assets by the end of the second quarter.
With the second quarter results compiled by BDO, a top five-ranked global independent public accounting firm, it is now evident that Tether’s assets exceed its total liabilities. According to Paolo Ardoino, CTO of Tether, the company will continue to foster transparency in a bid to enable seamless mainstream adoption of the nascent cryptocurrency market.
“By continuously improving our reserves attestation process, we aim to set new standards in the industry and inspire others to follow suit. As we move forward, we remain dedicated to embracing accountability, enhancing risk management and security, leading by example. With a firm focus on transparency, we aim to shape a future where every participant in the global financial ecosystem can confidently navigate a realm built on trust and innovation. That’s why in this quarter, Tether’s USD₮ token in circulation surpassed its previous all-time high,” Ardoino noted.
Meanwhile, the company has managed to remain out of the radar of the SEC and CFTC amid the recent cryptocurrency regulatory crackdown following the collapse of FTX and Alameda Research late last year. However, Tether has in the past found itself reprimanded for its reserves discrepancies.
