• Tether, a stablecoin issuer, released its latest attestation report for the fourth quarter of 2022 which reported a net profit of $700 million in Q4.
• The net profit is in addition to their reserves and was attested by the accounting firm BDO.
• Tether’s consolidated assets exceeded its liabilities as of December 31, 2022 with excess reserves of at least $960 million.
Tether Reports Q4 Net Profit
Stablecoin issuer Tether has released its latest attestation report for the fourth quarter of 2022, revealing a net profit of $700 million. The report was attested by the accounting firm BDO and showed that Tether’s consolidated assets exceeded its liabilities as of Dec. 31, 2022, with excess reserves of at least $960 million. This is the first time that Tether has disclosed its profit figures.
Profit Is Part Of Shareholder Equity
The reported profits are part of shareholder equity, or what is left over from reserves after expenses have been paid. Commenting on this news, a company spokesperson said; „It’s basically additional capital sitting in the company to further strengthen Tether.“
Tether Removes Commercial Paper From Reserves
In December 2020, Tether pledged to stop issuing secured loans from its reserves and instead focus on organic growth and adoption of USDT tokens. Consequently, it removed commercial paper from its reserves to ensure more liquidity and stability in their operations moving forward.
Adoption Of USDT Growing
Despite a bear market throughout 2022, adoption of USDT tokens has grown significantly during this period thanks to several initiatives undertaken by the company such as partnerships with exchanges and companies like Visa Inc., Mastercard Inc., PayPal Holdings Inc., etc. As per CTO Paolo Ardoino; “Not only were we able to smoothly execute over $21 billion dollars in redemptions during the chaotic events of the year, but Tether has issued over $10 billion worth of USDTs an indication of continued organic growth and adoption“.
Tether’s Q4 attestation report shows that despite a bear market throughout last year they managed to remain profitable while ensuring liquidity and stable operations via removing commercial paper from their reserves system. Adoption rates for USDT tokens have also increased significantly since then proving how reliable and trustworthy they are among their users worldwide