Tether Reports Increase of Its Excess Collateral Reserves

The most well-known and most-capitalized cryptocurrency platform Tether estimated it would post a profit of $700 million in Q1 2023, bringing its total excess reserves to more than $1 billion.

As we know, Tether stands behind the issuance of the USDT stablecoin that is normally pegged 1:1 to the U.S. dollar. USDT is backed by fiat currencies and real assets like U.S. Treasuries, so Tether’s charter says it can always be exchanged in the same proportion to the U.S. dollar.

Tether ended up selling all of its business assets and buying U.S. Treasuries, instead of other USD proxies, and employed auditors to verify and certify the company's reserves and assets held.

Tether's latest report for the December quarter showed that it had more assets than liabilities. Tether back then, in February, announced that it had made a profit of $700 million in the December quarter. The company's total assets, net of liabilities, were $960.6 million.