Tether, the company behind the USDT stablecoin, has published an attestation revealing the company’s financials during Q2 2023. The document, prepared by BDO, a network of accounting and consulting services, found Tether has increased its reserves by $850 million during this period, with its overall excess reserves reaching $3.3 billion.
Tether Attestation Reveals Excess Reserves Reached $3.3 Billion in Q2
Tether, the company that issues the USDT stablecoin, the largest of its kind in the cryptocurrency market, has released an attestation of its financial standings, revealing the composition of its reserves as of June 30.
The document, prepared by BDO, an international network of accounting and consulting firms, determined that the company increased its reserves by $850 million in Q2. The document also found that Tether’s excess reserves, defined as the “company’s own profits – not distributed to shareholders and which the company has decided to keep on top of the 100% reserves that Tether maintains to back all the outstanding tokens,” reached $3.3 billion.
According to Tether, the company’s financial situation “demonstrates the importance of taking the right risk management decisions and care for its community, keeping almost an additional 4% of assets within its reserves.”
T-Bills and Other Investments
The Tether consolidation reserves report also showed that the company has an exposure of almost $56 billion to U.S. Treasury bills with an average maturity of less than 90 days. Also, Tether has an indirect exposure to these treasuries via money market funds of $8.1 billion, while close to $9 billion are part of a group of treasuries given to Tether as collateral for reverse repurchase agreements.
Notably, the company also holds $1.67 billion in bitcoins and $5.5 billion in “secured loans,” defined by Tether as being “over-collateralized by liquid assets subject to margin call and liquidation mechanisms.”
Paolo Ardoino, CTO of Tether, praised the company’s actions with this disclosure. In a press release, Ardoino stated:
Transparency is not just a buzzword for us; it is the cornerstone of our philosophy. We believe that open communication and strong financials foster trust and reliability, and this is what the global community deserves especially in a year devastated by many failures across the banking and crypto industry.
Tether announced two investments in different bitcoin mining initiatives in Latam as part of its expansion into the renewable energy sector. In June, Tether disclosed its participation in Volcano Energy, a $1 billion renewable bitcoin mining project in El Salvador. Also, in May, the company partnered with a local startup in Uruguay to kickstart a Bitcoin mining project.
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