According to Bloomberg, the market value of Tether’s USDT token has surged to over $114 billion, driven by increased demand during this year’s cryptocurrency rally. The British Virgin Islands-incorporated company reported a record net profit of $5.2 billion for the first half of the year, although it did not disclose the specifics of how this profit was derived in its recent statement.

Stablecoins, such as Tether’s USDT, are a type of cryptocurrency designed to maintain a one-to-one value with fiat currencies like the US dollar. These stablecoins are typically backed by cash and cash equivalents. Tether revealed that it has increased its direct and indirect ownership of US Treasury bills, which now exceed $97.6 billion. The majority of the reserves backing Tether’s stablecoins are held in Treasuries, from which the company earns interest income.

Tether’s quarterly results are disclosed through attestations by BDO, a third-party firm. However, these attestations are not equivalent to full financial audits, as they provide only a snapshot in time and do not offer complete access to the company’s financial records. The quality of assets backing stablecoins like Tether’s USDT has faced significant scrutiny in recent years. Regulators have expressed concerns about the liquidity of these reserves and whether they can withstand mass redemption requests during periods of market stress.

Tether’s Chief Technology Officer, Paolo Ardoino, emphasized that obtaining a full audit remains a top priority for the company. He highlighted the complexities involved in auditing stablecoins, noting that major auditing firms may be hesitant to take on such tasks due to potential conflicts with their existing banking clients. Despite these challenges, Tether continues to focus on transparency and maintaining the stability of its USDT token.