How Tether Managed Record $4.52 Billion Quarterly Profits

Tether, which operates the leading stablecoin USDT, reported a record net profit of $4.52 billion in the first quarter of 2024. This was primarily driven by gains from its large holdings of U.S. Treasuries.

This performance marks a significant financial milestone for the company and demonstrates its skill in managing a diverse portfolio of assets in a volatile market environment.

US Treasuries Boost Tether Profits

tether released A detailed financial report revealed that profits increased 61% quarter-on-quarter. The company attributes this impressive growth to its strategic investments in U.S. Treasuries, which currently total more than $90 billion.

Additionally, Tether’s net worth is $11.37 billion as of March 31, 2024. This is a significant increase from the $7.01 billion recorded at the end of 2023.

Such a strong capital base gives Tether an important buffer to maintain its currency peg and financial stability. In fact, the reserves essential to backing Tether’s stablecoin USDT are primarily cash and cash equivalents, accounting for approximately 90% of its holdings.

Tether CEO Paolo Ardoino said: “By reporting not only the composition of our reserves, but also the current group net assets of $11.37 billion, Tether is committed to transparency and reliability. “We are once again raising the bar for the crypto industry in this area.”

This high liquidity ratio is very important for Tether, allowing it to quickly respond to withdrawal demands and maintain a stable valuation for the stablecoin. Despite previous controversies regarding the reserve’s transparency, Tether has taken substantial steps to prove its financial health and clear doubts.

Read more: A guide to the best stablecoins of 2024

tether reserve. sauce: tether

The company has consistently strengthened its disclosure practices, with the latest report providing a detailed breakdown of assets and liabilities. Such transparency allows the company to distance itself from past accusations of insufficient reserves. Second, we will strengthen our commitment to regulatory compliance and operational integrity.

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