The stablecoin’s issuer, Tether Holdings Limited, has released the attestation report for the first quarter of FY24. As of March 31, 2024, the most recent attestation surpasses the reserves supporting stablecoins denominated in Tether Fiat. It also offers a thorough summary of the financial strength of the Tether Group as a whole.
Reports from Tether Massive Net Profit
Tether Group achieved a remarkable feat in the first quarter of 2024, as its net profit skyrocketed to an astounding $4.52 billion, signifying a pivotal moment in its history. The primary source of income was net operational profits, mainly from holdings in US Treasury securities. Mark-to-market gains from positions in gold and bitcoin also contributed to the profits.
Furthermore, Q1 2024 demonstrated the USDT issuer’s unmatched achievement in growing its direct and indirect ownership of US Treasury bonds, which currently exceeds $90 billion. This also included indirect exposure from investments made in US Treasury bonds through money market funds and overnight reverse-repurchase agreements.
The USDT issuer’s first-ever disclosure of its net equity, which stood at an astounding $11.37 billion as of March 31, 2024, further demonstrated its dedication to openness. Tether’s CEO, Paolo Ardoino, stressed the company’s commitment to transparency, consistency, liquidity, and prudent risk management. “Tether has demonstrated its unwavering commitment to transparency, stability, liquidity, and responsible risk management with the first attestation of 2024,” he said.
“Tether continues to shatter records with a new profit benchmark of $4.52 billion, reflecting the company’s sheer financial strength and stability,” the CEO of Tether continued. By disclosing the makeup of our reserves and the Group’s $11.37 billion net equity, Tether is once again setting the standard for transparency and confidence in the cryptocurrency space.
Reserves of Assets and Strategic Investments
Furthermore, Tether confirmed that this is backed by an outstanding 90% of its fiat-denominated stablecoins, Cash, and Cash Equivalents. As a result, it guarantees liquidity for the stablecoin ecosystem. More than $12.5 billion in USDT was issued in only the first quarter, strengthening Tether’s hold on the top spot in the stablecoin industry.
The latest report’s Reserves Report (RR) part reaffirmed Tether’s sound financial situation. For USDT tokens in circulation, its asset reserves are $6.26 billion, more significant than its liabilities. The study also emphasized Tether’s strategic investments, which totaled more than $5 billion as of the report’s date. Investments have been made in several industries, including P2P communication, renewable energy, AI and data, and bitcoin mining.
