Tether bags record $4.5b profit in Q1

USDT issuer Tether broke a new record after making a net profit of $4.5 billion in the first quarter of 2024.

A BDO assurance opinion published on May 1 showed that Tether’s Treasury bond stock reached a new high of over $90 billion, and the digital asset company’s total net equity capital exceeded $11.3 billion due to diversified operations.

Since the fourth quarter of last year, the USDT provider’s U.S. Treasury securities and net equity holdings have increased from approximately $80 billion and $7 billion, respectively, according to the confirmations.

Source: Tether

The latest report revealed that $1 billion of its record-breaking profits came from stablecoin issuers and reserve management strategies. In other words, most of the profits were made from US Treasury bonds, while the rest came from Bitcoin (BTC) and Gold assets.

Moreover, this is the first time the firm’s fiat-pegged stablecoins have been backed by up to 90% cash and cash equivalents. Tether CEO Paolo Ardoino said the statistics underscore our commitment to responsible risk management as the crypto and stablecoin market leader.

Source: Tether

According to CoinGecko, USDT is the largest stablecoin pegged to the US dollar and the third-largest cryptocurrency behind Bitcoin and Ethereum (ETH), with a market cap currently exceeding $110 billion.

“Tether once again raises the bar on transparency and trust in the cryptocurrency industry.”

Paolo Ardoino, CEO of Tether