Tether’s Q2 2023 Report: Surplus Reserves Reaches $3.3 Billion

• Tether Holdings said in its Q2 attestation report that its surplus reserves had grown by $850M.
• From April to June 2023, Tether’s operational earnings topped $1 billion.

According to its most recent financial attestation for the second quarter of 2023, Tether’s treasury reserve assets supporting circulating USDT tokens continue to grow. Tether Holdings said in its Q2 attestation report that its surplus reserves had grown by $850 million, to a total of $3.3 billion, as per the data from accounting firm BDO.

The company’s indirect exposure to U.S. Treasuries owned through money market funds and U.S. Treasuries collateralizing its sudden repo is also revealed for the first time in this report.

Prioritizing Surplus Reserves

After the severe crypto winter and fall of several firms last year, Tether has prioritized allocating corporate earnings to accumulating surplus reserves. Tether’s 100% reserves to redeem USDT tokens in circulation are not included in the surplus.

Tether’s CTO Ardoino has decided to use income from shareholders to fund the creation of a sizable excess reserve. Because he believes that companies who have undercollateralized their assets or operations have created vulnerabilities in the broader crypto ecosystem.

Moreover, from April to June 2023, Tether’s operational earnings topped $1 billion, a 30% increase over Q1 2023. Quarterly performance increased because of a market-wide upswing fueled by Bitcoin’s surge to the $30,000 level.

A whopping 85% of Tether’s reserves are in “liquid” assets like cash or currency equivalents, according to the 2023 Q2 report. According to Tether’s most recent reserve attestation, the value of the company’s holdings is $86.4 billion. Also, there is now $83.17 billion worth of USDT tokens in circulation, making Tether liable for that amount. Tether has been dominating the stablecoin market for quite some time now.

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