- Summary:
- Latest Tether crypto attestation report shows that the company has made 700 million worth of profits in 2022.
Tether crypto is one of the hottest topics in crypto. Its US Dollar pegged stablecoin USDT is currently the biggest stablecoin in the whole crypto market. The market cap of USDT stands at $68.2 billion which also makes it the 3rd biggest cryptocurrency by market cap behind Bitcoin and Ethereum.
Recently Tether has released its attestation report. The report covers 2022 and shows that the company’s assets exceed its liabilities. This also serves to the most allegations that circulate about the backing of USDT. Since the collapse of Tera Luna, the stablecoins are facing an intense secrutiny. Many analysts have already expressed their concerns about the holding of the top stablecoin issuer.
The latest Tether attestation report was attested by the accounting firm BDO. As per the report the company recorded a profit of $700 million during Q4 2022. This profit was reinvested by the company into its reserves.
Cryptocurrency Tether Gets Rid of Commercial Paper
Tether’s reserves are mostly composed of cash, cash equivalents, and other short-term deposits. According to the report, the total consolidate assets of the company’s are far more than its liabilities. The company currently holds assets of worth $67 billion. However, its total liabilities add up to only $66.08 billion. This reflects an excess of reserves on the company’s balance sheet that amount to at least $960 million.
Last year, Tether has to face intense backlash after it revealed its huge exposure to secured loans. In the latest report, these loans have been significantly decreased and now amount to only $300 million. The rest of the assets are backed by commodities, corporate bonds and precious metals.
Tether’s USDT is the largest stablecoin in the market, with a supply of over 68 billion coins. Tether crypto CTO Paolo Ardoino also lauded the company’s profitability in 2022 despite tough economic conditions.
The company also processed the redempmtions of $21 billion in the year while issuing $10 billion worth of token. These redemptions showing that the company is still standing strong against all the mainstream Fud. USDT crypto is currently facing a very strong competition from BUSD and USDC stablecoins. There has been a massive increase in the marketcaps of these competitors as compared to Tether.