In the latest Tether report, the stablecoin issuer revealed it closed the first quarter of 2023 with a net profit of $1.48 billion, more than BlackRock.

Tether report

The figure doubled from the $700 million it generated the previous quarter. The company confirmed that its token circulation increased by 20%.

According to the Tether report, consolidated reserves reached $81.1 billion in total asset by the end of March, the majority of which are in US Treasury Bills.

Additionally, Tether holds another $1.5 billion in Bitcoin and $3.4 billion in gold reserves on its balance sheet, which amount to 2% and 4% respectively. This is the first time that Tether has revealed that it has both Bitcoin and gold in its reserves.

Tether CTO and spokesman, Paolo Ardoino, said:

“We continue to monitor the risk-adjusted return on all assets within our portfolio on an ongoing basis and expect to make further changes as the overall economic environment changes and the market cycle progresses as a part of our normal, ongoing risk management processes.”

Top stablecoin issuer

The company holds $82.6 billion in market capitalisation at the time of writing, per data from CoinGecko. The company has an array of financial products, and also issues tokens pegged to gold (XAUt), but the market share of such products is a fraction of USDT. In early April, the total tokenised gold market eclipsed $1 billion on the back of an increasingly dire macro-economic backdrop.

The CTO indicated that the consolidated Tether report is a testament to the company’s commitment to increasing transparency standards.

“Looking ahead to Q2, we have an extremely positive outlook and remain committed to transparency, which is why we have introduced new categories in the reserves’ breakdown in our quarterly report to provide even greater transparency to our users,” Ardoino continued.

Tether has begun reinvesting a portion of excess reserves into Bitcoin, often compared to ‘digital gold’. It remains to be seen whether the company will issue a silver-backed token, thereby opening the option to invest in Litecoin by extension.

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