Tether’s Q1 2023 assurance report shows a reserves surplus at $2.44B all-time high

Tether Holdings Limited has today published its Q1, 2023 assurance report reaffirming the accuracy of Tether’s Consolidated Reserves Report (CPR). Among other things, the report shows that the company’s consolidated assets exceed its consolidated liabilities.

The CPR broke down the assets held by Tether Holdings as of March 31, 2023. It provides additional categories with the aim of increasing Tether reserves reporting transparency.

Extra categories on Tether’s report

For the first time, Physical gold, Overnight Repo, Corporate Bonds and Bitcoin (BTC) ownership were reported separately.  The report revealed an increase in Tether’s reserves surplus which hit an all-time high of $2.44B up $1.48B in Q1, 2023.

Commenting on the recent report, the CTO of Tether, Paolo Ardoino, said:

“Our net profits for the quarter were $1.48B, a testament to the strength and stability of our platform.  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.”

Besides the increased net profit, the first quarter also saw a 20% increase in Tether’s tokens in circulation. This pointed to a growing trust among Tether customers making Tether very optimistic for the future.

According to the report, Tether reported $81.8 billion in consolidated total assets. Most of the company’s reserves are invested in US Treasury Bills.

Tether has been working to reduce its reliance on pure bank deposits as a source of liquidity. It instead wants to leverage the Repo market as an additional measure to ensure higher standards of protection.

Liquid reserves

According to the report, Tether’s reserves are held in cash, cash equivalents, and other short-term deposits, making the reserves extremely liquid.

The report also highlighted a 25% reduction in secured loans which dropped from 8.7% to 6.5% of the total reserves. Bitcoin and Gold represent 2% and 4% of the total reserves respectively.

In addition, all new issuance of tokens has been invested in US Treasury bills or placed in overnight Repo.