Paolo Ardoino, the CTO of Tether Holdings Ltd., the largest stablecoin issuer said the company expects to generate a profit of around $700 million in the current quarter, which is similar to what it reported in Q4 of last year.
Since the end of 2020, the circulation of Tether’s stablecoin, USDT, has increased by 18%, reaching $78 billion. Ardoino stated that Tether aims to end this quarter with a $1.6 billion surplus in the reserves it holds to support USDT’s peg to the US dollar.
Most of Tether’s reserves are invested in short-term US Treasury bills after the company reduced its holdings of commercial paper last year.
Tether’s T-bill holdings are held by Cantor Fitzgerald, while Deltec Bank & Trust Ltd. and Capital Union Bank assist in managing the company’s reserves.
Tether’s USDT has seen a surge in circulation in recent weeks, mostly at the expense of its main competitor, Circle Internet Financial Ltd.’s USD Coin.
However, the latter experienced a decline when it failed to maintain its peg to the US dollar earlier this month after news emerged that Circle had deposits tied up with the failed lender Silicon Valley Bank. With another major stablecoin, Paxos’s BUSD, facing scrutiny from US authorities, USDT now accounts for almost 60% of the market.
Paolo Ardoino, the CTO of Tether Holdings Ltd., stated that the company’s risk management, financials, and decision-making processes are managed internally. He also mentioned that Tether has its investment team overseeing its portfolio and aims to collaborate with additional banking partners in the future. Cantor Fitzgerald did not respond to a request for comment, while Capital Union and Deltec did not immediately provide a comment.
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