Tether, the company behind the world’s largest stablecoin, USDT, released its first-quarter 2024 attestation, revealing a record-breaking $4.52 billion net profit. This staggering figure underscores the company’s financial strength and stability, further solidifying its position as a major player in the cryptocurrency market.
Profitability Driven by Treasury Holdings and Asset Appreciation
The attestation details that $1 billion of the profit stemmed from the group’s entities responsible for issuing and managing stablecoin reserves. Notably, a significant portion of this profit originated from Tether’s U.S. Treasury holdings, with the remaining amount attributed to gains in Bitcoin and gold positions.
Transparency Takeover: Unveiling Net Equity and Treasury Ownership
Tether’s commitment to transparency reached new heights with the revelation of its direct and indirect ownership of U.S. Treasurys, exceeding a staggering $90 billion. Additionally, the company unveiled its net equity for the first time, reaching a remarkable $11.37 billion as of March 31, 2024, signifying a substantial increase from the $7.01 billion recorded at the end of 2023.
The attestation reaffirms Tether’s commitment to its 1-to-1 backing of USDT with cash and cash equivalents. The report states that Tether-issued tokens remain backed by at least 90% in such assets, providing further assurance to its users.
Tether CEO Emphasizes Financial Strength and Transparency
Tether CEO Paolo Ardoino expressed his enthusiasm about the record-breaking profit, highlighting it as a testament to the company’s robust financial health and stability. He further emphasized Tether’s commitment to transparency by not only disclosing the composition of its reserves but also revealing its net equity, setting a new standard for the cryptocurrency industry.
Tether’s impressive first-quarter performance and its focus on transparency are likely to resonate positively within the cryptocurrency community, potentially solidifying USDT’s position as the leading stablecoin in the market.
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