Stablecoin Tether (USDT) profits and reserves

The most prominent stablecoin in the crypto ecosystem, Tether (USDT), has recently revealed its profits worth $700 million during the last phase of 2022.

The data was provided by BDO, a leading global independent public accounting firm.

Profits of $700 million for the stablecoin Tether (USDT) in Q4 of 2022

Tether’s Consolidated Reserves Report (CRR) showed that Tether closed its 2022 balance sheet with zero commercial paper and about $67 billion in consolidated assets and a surplus of at least $960 million.

The most recent CRR of Tether (USDT) was conducted up to 30 September. Today’s data show that the stablecoin has earned about $700 million from 1 October through 31 December 2022.

Thus, we can definitely say that if we talk about Tether (USDT), we are referring to a stablecoin with extremely liquid reserves, with most of its investments held in cash, cash equivalents and other short-term deposits.

In addition, the move made by the stablecoin shows a commitment to a transparency regime. Still showing a reduction in secured loans of about $300 million and $700 million in net income in addition to Tether (USDT) reserves.

By going into even more detail of the latest Consolidated Reserves Report (CRR) of Tether (USDT), it is possible to analyze the stablecoin’s reserves.

As of 31 December, the Tether stablecoin (USDT) showed total consolidated assets of $67,044,148,175. The total liabilities of the Tether Group amounted to $66,083,148,175 related to digital tokens issued. Therefore, it can be seen that consolidated assets, compared to liabilities are increasing steadily.

“With the submission of this latest consolidated reserves report, Tether continues to deliver on our promise to lead the industry in transparency. After a tumultuous end to 2022, Tether has once again demonstrated its stability, resilience, and ability to handle bearish markets and black swan events, setting itself apart from the bad actors in the industry. 

Not only were we able to smoothly execute over $21 billion in redemptions during the chaotic events of the year, but Tether on the other hand issued over $10 billion ₮, an indication of Tether’s continued organic growth and adoption. Last quarter, Tether generated over $700 million in profits and increased its reserves. We are proud of how Tether has continued to be a driving force in rebuilding trust in the cryptocurrency industry, and we are determined to continue to set a positive example for both our peers and competitors.”

This is what Paolo Ardoino, the CTO of Tether, wanted to say, remarks that demonstrate the strength of the stablecoin despite the criticism it has received and the doubts USDT holders have had.

Tether (USDT) is officially the leading stablecoin in global emerging markets

Tether has partnered with ATM companies to make USDT available in more than 24,000 ATMs in Brazil starting back in November 2022. With this move, Tether has secured its place as the top stablecoin globally.  There are many countries that turn to Tether to protect their savings or carry out investments: Brazil, Turkey, Lebanon, Argentina and many others.

In South America, as well as in North Africa, Tether (USDT) is held by millions of people and multiple companies. Even in Brazil it is the most widely held cryptocurrency, surpassing Bitcoin and Ethereum.

Why are stablecoins more successful in emerging economies?

No doubt, this phenomenon is very much related to the fact that governments with more volatile currencies are slowly limiting access to the dollar. So in this case, stablecoins like Tether provide an alternative for people in these countries.

USDT is seen as a lifeline, it shows a digital and futuristic alternative globally.

Tether’s reserves show that the stablecoin is safe, has liquidity, and is very strong. Tether is able to bring much needed dollar liquidity to the global level, especially for emerging economies.