During an interview, Paolo Ardoino, the CTO of Tether, made a significant announcement regarding the company’s excess reserves.
According to Ardoino, Tether currently has approximately $1.6 billion in reserves to support its stablecoin, USDT. Tether’s USDT is backed by a variety of real assets, including fiat currency and bonds, which ensures that it remains stable at a 1:1 ratio against the US dollar.
Ardoino also stated that the company’s excess reserves had increased by $700 million in the current quarter, bringing the total to $1.66 billion. He clarified that this money would remain with Tether to further capitalize on the stablecoin’s success.
Despite Tether’s strong financial position, some have expressed concerns about the stability of the Silicon Valley Bank (SVB), which recently collapsed, leading to a significant drop in the value of the USDC stablecoin.
When asked about this, Ardoino dismissed these concerns and highlighted Tether’s resilience, noting that banks have failed before, but Tether continues to make money.
Ardoino concluded that if people are looking for a safe investment option, Tether is the best choice, especially when compared to traditional banks that have recently collapsed, such as Credit Suisse.
With the SVB collapse causing unprecedented damage to the value of USDC, Tether’s stability and financial position continue to provide reassurance to investors.