Tether Holdings Limited, the firm responsible for the widely-used stablecoin Tether (USDT), has achieved an astounding “record-breaking net profit” in the final quarter of 2023, primarily propelled by interest generated from the United States Treasury and strong performance in other assets.
As per the attestation report published on January 31, Tether reported a remarkable net profit of $2.85 billion in the fourth quarter of 2023, of which a significant portion, up to $1 billion, resulted from interest earned on United States Treasury securities.
Additionally, the company benefited from its holdings of Gold and Bitcoin (BTC).
Analyzing the company’s workforce, Tether was found to employ 125 individuals, resulting in an extraordinary net profit per employee of $22.8 million for the last quarter.
Over the course of the year, Tether disclosed a total net profit of $6.2 billion, with a substantial $4 billion stemming from investments in U.S. Treasury bonds and other non-crypto assets.
The overall assets managed by Tether encompassed $80.3 billion in U.S. Treasurys, $2.8 billion in BTC, $3.5 billion in gold, and $1.5 billion in venture capital investments.
United States Treasurys are debt instruments issued by the U.S. Department of the Treasury to fund government expenditures, offering investors a return on their investment.
As of December 2023, the one-year U.S. Treasury bill yielded 4.7%. These instruments, backed by the U.S. government, are renowned for their safety, making them among the most secure investments globally.
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Since 2022, when the crypto industry faced a wave of bankruptcies and contagion fears, Tether has taken steps to secure its stablecoin with higher-quality assets, including T-bills and gold reserves.
By September 2023, the company proudly declared itself one of the world’s leading purchasers of U.S. Treasury bills.
In response to community concerns regarding portfolio risk, Tether has amassed $5.4 billion in excess reserves in 2023, effectively covering its outstanding $4.8 billion in secured loans.
The company assured stakeholders that these secured loans are significantly overcollateralized. BDO Global conducted a review of Tether’s financials, reinforcing its commitment to transparency.
Tether has emerged as one of the standout successes of the recent crypto downturn, solidifying its market dominance in 2023, with USDT tokens accounting for over 70% of all stablecoins in circulation.
Moreover, Tether has made strides in partnering with law enforcement agencies, recently announcing its collaboration with the U.S. Federal Bureau of Investigation to enhance efforts in monitoring and combatting illegal activities on its platform.
