Tether Generated Over $700 Million in Profits in Q4, 2022

Tether Holdings Limited – the company behind the largest stablecoin USDT – revealed a net profit of around $700 million in the fourth quarter of 2022.

It ended last year with excess reserves of $960 million and at least $67 million billion in consolidated total assets.

Tether Remained Unfazed by the Bear Market

Even though 2022 devastated the entire cryptocurrency sector, Tether’s net profits increased by over $700 million in Q4. It reduced its secured loans by $300 million and revealed a direct exposure of over 58% to US Treasury Bills. 

The data further showed that the firm finished last year with zero commercial paper and excess reserves of $960 million. Its consolidated total assets stand at $67 billion, while total liabilities equal $66 billion (almost 100% of the amount relates to issued tokens).

Chief Technology Officer Paolo Ardoino argued that the recent report doubles down on Tether’s ambition to “lead the industry in transparency.” He claimed the company had proven its “stability and resilience” amid a turbulent year that saw numerous bankruptcies and black swan events.

“Not only were we able to smoothly execute over 21 billion dollars in redemptions during the chaotic events of the year, but Tether has, on the other side, issued over $10 billion of USDT, an indication of continued organic growth and adoption of Tether. 

Last quarter, Tether generated over $700 million in profits, adding to its reserves. We are proud of how Tether has continued to be a driving force in rebuilding trust within the crypto industry, and we are determined to continue to set a positive example for our peers and competitors alike,” he concluded.

Tether’s Collapse Could Trigger Crypto’s Doom

The firm behind the largest stablecoin is so dominant that some individuals think a potential crash could mean a “game over” for the entire cryptocurrency industry. Such examples are Dogecoin’s Co-Creator – Billy Markus (better known as Shibetoshi Nakamoto), and Jack Dorsey – the former CEO of Twitter.

The Wall Street Journal published a report at the end of 2022, maintaining that Tether has “increasingly been lending its own coins to customers rather than selling them for hard currency upfront.” It claimed the move could trigger severe liquidity issues for the company.

The stablecoin-issuer was quick to fire back, saying the loans are “extremely overcollateralized and even backstopped by Tether’s additional equity if needed.” 

It criticized the mainstream media again in mid-December, vowing to dwindle its secured loans in its reserves to zero by the end of this year.