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Tether says USDT excess reserves reached US$3.3 billion in Q2

Tether Holdings Limited, the issuer of stablecoin USDT, released its consolidated reserves report for the second quarter of 2023 on Monday, showing consolidated assets of at least US$86.5 billion against total liabilities of US$83.2 billion. In the first quarter, Tether had US$81.8 billion in consolidated total assets, with the majority in U.S. Treasury bills.

See related article: Is Tether unmoored — or just dandy?

Fast facts

  • Tether’s Q2 consolidated reserves report, a financial report attested by accounting firm BDO that explains what the company owns and owes, claimed that 85% of Tether’s reserves are in cash and cash equivalents. Tether’s said its reserves aim to provide further cushion for its tokens, such as the USDT, the world’s largest stablecoin.

  • Tether reported an increase of approximately US$850 million in excess reserves, totaling around US$3.3 billion as of June 30, the quarter’s close.

  • “Excess reserves are 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,” Tether said in the statement.

  • The report showed Tether’s US$72.5 billion exposure to government securities in the form of direct holdings of U.S. Treasuries and indirect holdings through Money Market Funds, which are mutual funds investing in short-term debt instruments.

  • The firm saw a 30% quarter-over-quarter increase in operation profits, earning over US$1 billion from April to June.

  • The company also announced a share buyback amounting to US$115 million, and other investments in energy-related initiatives financed from the profits of this quarter.

  • Tether was ordered to issue quarterly consolidated reserve reports by the New York State Attorney General in February 2021 as part of a US$18.5 million settlement. The attorney general investigated whether the firm covered up a US$850 million loss in funds. No wrongdoing was admitted by Tether.

See related article: Are stablecoins like Tether ready for regulatory scrutiny?

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