Tether Posts $700M Profit in Q4 2022 Amidst Market Crunch

Despite the huge blow the crypto industry experienced all through last year and the bankruptcy of some crypto exchanges, the company behind the largest stablecoin, Tether, has consistently placed transparency, accountability, and operational excellence above every other thing. As such, the blockchain-enabled platform experienced growth in the fourth quarter of 2022.

According to Tether’s attestation report, it earned about $700 million as profit at the end of last year which made the value of its consolidated assets exceed the total of the consolidated liabilities. Due to the profit earned, Tether’s reserves have tremendously increased and the profit will also be used to improve the firm.

Although the attestation report which revealed how well the company fared was dated December 31, 2022, however, the company shared it with the public on February 9. Likewise, the report also gave full detail of the platform’s holding as of the end of 2022.

The report was completed by BDO Italia, a financing advisory, and accounting auditing firm. The auditing firm confirmed the ethics of the company’s Consolidated Reserves Report (CRR). Similarly, the report attested that the company recorded about $67 billion in consolidated assets and had about $960 million reserves in excess.

Paolo Ardoino, Tether’s chief technical officer (CTO) talked about the stability of the company despite all the blows it had to face in 2022. The company easily executed over $21 billion dollars in redemptions and gave out over $10 billion of its USDT which called for the adoption of Tether. 

Tether Exits Commercial Papers as Reserves

Recall that at the beginning of October last year, Tether successfully reduced its commercial paper exposure to less than 50 million after making sure that the stablecoin USDT is portrayed as a legitimate innovation in the crypto industry.

The aim to bring Tether’s commercial paper exposure to zero came through later that same month when the issuer completely cut down the use of commercial papers in its reserve and started investing in the U.S Treasury Bills dubbed ‘T-Bills’ for its stablecoin reserve. However, the elimination of the commercial papers was done gradually without any vulnerability to losses.

In the same vein, Tether announced in December that it would stop giving out loans from its reserve in 2023, as it has reduced its secured loans to zero with immediate effect.