The organization behind the biggest stablecoin, USDT, Tether Holdings Limited, reported a fourth-quarter 2022 net profit of around $700 million.
It had $960 million in excess reserves at the end of the previous year, and its consolidated total assets were at least $67 billion.
Despite the complete collapse of the cryptocurrency industry in 2022, Tether’s net income rose by almost $700 million in Q4. It decreased its secured loans by $300 million and disclosed a direct exposure to US Treasury Bills of more than 58%.
The information also revealed that the company ended the previous year with excess reserves of $960 million and no commercial paper. Its combined total assets are $67 billion, whereas its combined total liabilities are $66 billion, nearly all of which relate to issued tokens.
The most recent report, according to Chief Technology Officer Paolo Ardoino, “doubles down” on Tether’s goal to “lead the industry in transparency.” In a challenging year marked by multiple bankruptcies and “black swan” incidents, he asserted that the company had demonstrated its “stability and resilience.”
“Not only were we able to smoothly execute over 21 billion dollars in redemptions during the chaotic events of the year, but Tether has, on the other side, issued over $10 billion of USDT, an indication of continued organic growth and adoption of Tether.
Last quarter, Tether generated over $700 million in profits, adding to its reserves. We are proud of how Tether has continued to be a driving force in rebuilding trust within the crypto industry, and we are determined to continue to set a positive example for our peers and competitors alike,” he concluded.
Some people believe that because the company that created the biggest stablecoin holds such sway over the market, a hypothetical crash may spell the end of the cryptocurrency sector as a whole. Examples of this include Billy Markus, the co-creator of Dogecoin (also known as Shibetoshi Nakamoto), and Jack Dorsey, the former CEO of Twitter.
At the end of 2022, The Wall Street Journal reported that Tether has “increasingly been lending its own coins to customers rather than selling them for hard currency upfront.” It stated that the action might cause the corporation to experience serious liquidity problems.
Quick to respond, the stablecoin issuer said that the loans are “extremely overcollateralized and even backstopped by Tether’s additional equity if needed.”
Midway through December, it lambasted the mainstream media once more and vowed to reduce the number of secured loans it had in reserves to zero by the end of the year.
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