With a market cap of over $82 billion, Tether dominates the stablecoin market and is currently the third largest cryptocurrency by market cap.
On Wednesday, May 10, stablecoin issuer Tether released results for the first quarter of the year (Q1 2023), declaring a staggering net profit of $1.48 billion, more than double the $700 million in the same period last year . Interestingly, Tether also revealed that its circulation usdt Jumped 20 percent.
Tether in Q1 2023
As we know, Tether has benefited from Circle’s de-pegging concerns usdc stable currency. Additionally, Tether’s USDT has also benefited from the drop in BUSD circulation.
According to the consolidated results report for Q1 2023, Tether had total assets of $81.8 billion at the end of March 23, most of which were in US Treasury bills. Interestingly, the stablecoin issuer holds significant amounts of gold and bitcoin on its balance sheet. This is the first time Tether has disclosed this Bitcoin and gold bars.
Tether holds a total of $3.4 billion worth of gold as well as a total of $1.5 billion in bitcoin. Gold and bitcoin account for 4 percent and 2 percent of its total reserves. The company’s reserves currently stand at an all-time high of $2.44 billion. Speaking of the development, Tether CTO Paolo Ardoino said:
“Our net profit for the quarter was $1.48B, a testament to the strength and stability of our platform. We continue to monitor the risk-adjusted returns on all assets within our portfolio on an ongoing basis and may make further changes as part of our normal, ongoing risk management processes as the overall economic environment and market cycles change. let’s hope Tether continues to evaluate the global economic environment and takes necessary steps to ensure that its customers’ funds are not exposed to high-risk scenarios.
Tether dominates the stablecoin market
With a market cap of over $82 billion, Tether dominates the stablecoin market and is currently the third largest cryptocurrency by market cap. Interestingly, apart from USD, Tether also issues other currencies and stablecoins pegged to gold. However, their market share is quite low compared to USDT.
Furthermore, Tether also keeps increasing USDT in circulation each time. During the three-month period between January and March, Tether had a total of $2.44 billion in excess reserves. arduino couple,
“Looking into Q2, we have an extremely positive outlook and are committed to transparency, which is why we have introduced new categories in the reserve breakdown in our quarterly reports to provide even more transparency to our users. “
Tether brings more transparency into assets held, with more disclosures in the latest results.
Bhushan is passionate about Fintech and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
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