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Tether, the issuer of stablecoins, releases latest audit report claiming to have earned $700 million?

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Tether, the issuer of stablecoins, releases latest audit report claiming to have earned $700 million?

The stablecoin issuer Tether has released the latest audit report signed by the accounting firm BDO, stating that Tether's reserves have excellent liquidity, with the majority held in the form of cash, cash equivalents, and other short-term deposits. As of December 2022, the assets exceeded the liabilities. Tether's CTO, Paolo Ardoino, also tweeted claiming that Tether made a profit of $700 million in the fourth quarter of last year, but did not specify the source of the profit.

Tether Latest Quarterly Report

The report states that Tether's total assets as of December 2022 were $67,044,148,175, with liabilities of $66,083,530,757, of which $66,057,260,169 are related to the issuance of digital assets. The difference between assets and liabilities, which would be classified as shareholders' equity on a traditional balance sheet, is referred to by Tether as the Shareholder Capital Cushion, amounting to approximately $960 million. This represents capital reserves allocated by Tether and its shareholders as part of their ongoing commitment to transparency and trust, reviewed quarterly to further stabilize the Tether ecosystem and provide protection for users.

Regarding the assets, 82.13% are held in the form of cash, cash equivalents, and other short-term deposits. Commercial paper has been reduced to zero as previously promised, and the proportion of secured loans has decreased from 9.02% to 8.73%, with an official commitment to reduce the secured loan ratio to zero by 2023.

Fourth Quarter Profit of $700 Million

Tether's CTO Paolo Ardoino also tweeted that Tether made a profit of $700 million in the fourth quarter of last year, without specifying the source of the profit. This figure was not mentioned in the audit report.

In his post, Paolo Ardoino mentioned Tether's commitment to building the technology for Bitcoin and stablecoins, investing in foundational projects and infrastructure. He concluded by expressing gratitude to the partners who have innovated alongside Tether: El Salvador and Lugano.

Note: Tether's cryptocurrency exchange Bitfinex is a partner in El Salvador's bond program. Lugano, a city in southern Switzerland, encourages local businesses to adopt Bitcoin and USDT as their universal currency. Tether collaborated with them to establish a 3 million Swiss franc fund with the plan to make the city a major blockchain hub in Europe.