Tether achieves record profit of $2.85 billion in the last quarter of 2023

Tether, issuer of USDT, the world’s largest stablecoin, set a new milestone by recording an impressive profit of US$2.85 billion in the fourth quarter of 2023. This result represents the highest quarterly profit ever achieved by the company in its history.

Interestingly, Tether revealed that approximately $1 billion of this profit comes primarily from interest on US Treasury bonds. The remainder of the profit came mainly from its gold and Bitcoin reserves, highlighting the diversification and strength of its investment strategy.

Tether’s USDT, recognized for its stability, is pegged to the value of the US dollar. The company maintains USDT’s parity with the dollar, ensuring reserves equivalent in “cash and cash equivalents” to the amount of USDT in circulation. Furthermore, Tether ensures that its customers can exchange USDT for fiat currencies at a 1:1 ratio, thus maintaining trust and liquidity in the market.

Tether’s recently published fourth-quarter report indicates that the company now has $5.4 billion in excess reserves. This represents an increase of US$2.2 billion in the last quarter alone, reflecting robust financial health and effective asset management.

USDT maintains leadership as the most traded stablecoin and cryptocurrency

In addition to being the largest stablecoin in terms of volume, USDT is also the most traded cryptocurrency today. In the last 24 hours, USDT recorded a trading volume of $33.5 billion, surpassing all other cryptocurrencies in market activity.

Currently, Tether boasts a market capitalization of approximately $96 billion. This impressive milestone places Tether as the third largest cryptocurrency in terms of market capitalization and on track to become the first stablecoin to surpass the impressive US$100 billion mark.

In comparison, USDC, the second-largest stablecoin managed by Circle Internet Financial, has a market cap of $26.78 billion. It is worth noting that Circle, seeking to expand its influence in the market, recently filed an application for an initial public listing, indicating its intentions to grow and further consolidate itself in the sector.

This financial success for Tether signals a significant moment for the stablecoin market and the cryptocurrency ecosystem in general, highlighting the growing adoption and confidence in stablecoins as a stable and reliable asset class.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.