Tether says it has $1.66 billion in excess USDT reserves

Following the first quarter, Tether expects to report a net profit of $700 million, which would lift USDT’s excess reserves to $1.66 billion. On CNBC, Paolo Ardoino, the company’s CTO, said.

For the fourth quarter, the issuer earned $700 million. As a result, by the end of 2022, equity rose to $960 million.

Mr Ardoino noted that Tether zeroed out its commercial papers on the balance sheet and took a commitment to shrink secured borrowings during 2023.

In mid-March, USDT doubled USDC by market capitalization. Turbulence in the U.S. banking sector, which gave rise to a short-lived depeg of the nearest competitor, further widened this gap.

At the time of writing, the combined market capitalization of USDT and USDC stood at $78.8 billion and $34.5 billion respectively, according to CoinGecko.

Ardoino expressed surprise at the question about Tether’s capacity to withstand an event like the collapse of SVB. The executive lamented that there are still skeptics who doubt USDT’s reserves even after problems at major U.S. banks.

“Seriously, after Credit Suisse and all the others that are failing, are you looking at Tether again? The company makes money, while institutions go bankrupt. If you need to put money somewhere, USDT is the safest of all options,” Ardoino said.

Earlier, Tether conducted an analysis of articles in The Wall Street Journal and accused the publication of bias against the company.

As reported in February, media reported on the placement of USDT reserves in Cantor Fitzgerald and Capital Union.