- Bank deposits are down more than 90%
- Tether added gold and BTC to its asset reserves for the first time
Tether released an analysis of its first quarter 2023 report. Tether posted record net income of $1.48 billion in the first quarter, raising its reserve surplus to $2.44 billion.
Also, the USDT stabelcoin issuer continues to wind down its secured loans in line with previous commitments.
They were reduced from 8.7% to 6.5%.. Also in 2022, commercial paper stocks were reduced to zero. The firm began buying U.S.
Treasuries for Tether’s reserves and as of Q1, they reached an all-time high of more than $53 billion, more than 64% of its total reserves.
In the first trimester of the year, Tether reduced its bank deposits from $5.3 billion to $481 million, thereby reducing the risk of bank failures.
This comes at a time when competitors are having trouble due to heavy reliance on bank deposits, which also face financial difficulties.
“If the point of stablocoin is to provide the world with reliable, stable, money, it is critical that users be as protected as possible from counterparty risk,” the company said in a statement.
Tether also included gold and bitcoin in its inventory, showing its commitment to stable coin transparency. They occupy 4% and 1.8% of total reserves, respectively.
This is part of Tether’s ongoing quest to be an industry leader in steiblocoin transparency.
It is notable that Tether’s profits have been higher than those of well-known companies such as Blackrock, Netflix, Starbucks, Cash App and Paypal.