Tether, the issuer of the world’s largest stablecoin, USDT, has completed the reserve authentication process with renowned international accounting firm BDO.
Tether today published BDO’s assurance opinion, which shows a net profit of $700 million for the fourth quarter of 2022, in addition to its reserves. The report confirms the accuracy of Tether’s Consolidated Reserves Report (CRR) as of December 31, 2022.
According to BDO, Tether’s reserves remain very liquid because most of its investments are maintained in cash, cash equivalents, and other short-term deposits. The report states that as of December 31, 2022, Tether’s consolidated assets were more than its liabilities.
According to the report, Tether has consolidated total assets worth at least $67.04 billion and consolidated total liabilities worth at least $66.08 billion as of the date, representing surplus reserves worth at least $960 million.
A Tether representative stated that the $700 million profit is part of shareholder equity or what remains after reserves, essentially extra capital for the company’s growth.
By the middle of October 2022, Tether had replaced all of the commercial paper investments in its USDT reserves with US Treasury Bills. In June 2022, the corporation first disclosed its intention to remove commercial paper from its USDT reserves. Less than 25% of the $82 billion in total reserves held by USDT at the time were made up of commercial paper.
Paolo Ardoino, the chief technical officer of Tether and Bitfinex, tweeted today, stating that Tether demonstrated “impressive resilience” during the bear market of 2022, despite the black swan events that affected many cryptocurrency businesses.
4/ Tether demonstrated a superior approach to risk management, that allowed to maintain its leadership, while consolidating profits.
Having a safe, conservative and profitable business that doesn’t require begging for funds from VCs has been always primary focus of Tether.— Paolo Ardoino 🍐 (@paoloardoino) February 9, 2023
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