Tether Holdings, the issuer of the world’s largest stablecoin USDT, announced a net profit of US$2.5 billion in the third quarter, and a cumulative net profit of US$7.7 billion so far this year. On this occasion, the market value of USDT continued to reach a new high, exceeding US$120.4 billion.
Tether CEO Paolo Ardoino said operating benefits from holding U.S. Treasury bonds in the third quarter were about $1.3 billion; the remaining $1.1 billion was unrealized gains from the company's gold positions.
Tether released attestation for Q3/2024.Another impressive quarter.
Summary as of 30 September 2024 for the companies managing stablecoins' reserves:
– $2.4 billion Q3/2024 net profits (~$1.3 billion deriving from U.S. Treasuries exposures and ~$1.1 billion from gold holdings)… https://t.co/kBRdCQfaOP
— Paolo Ardoino (@paoloardoino) October 31, 2024
Tether indicated that as of September 30, the net equity (capital minus liabilities) was $14.15 billion. According to Tether's Q3 attestation report, this is a significant increase from the $7.005 billion net equity recorded at the end of December 2023.
According to the attestation report signed by the third-party auditing firm BDO Italy, as of September 30, Tether's total reserves amounted to $125.5 billion, liabilities were $119.4 billion, and excess reserves rose to $6.1 billion.
The report indicated that Tether held approximately $105 billion in cash and cash equivalents among its reserve assets in the third quarter of this year, of which as much as $102.5 billion is directly or indirectly invested in U.S. Treasuries. Additionally, Tether holds $5 billion worth of gold and $4.8 billion worth of Bitcoin as reserve assets.
Tether stated in a statement: "One of the highlights of Q3 is that the issuance of Tether stablecoins reached a new high, with a total market circulation value of USDT nearing $120 billion."
The statement also emphasized that the circulation of USDT has grown by 30% year-to-date, equivalent to an increase of $27.8 billion, nearly equal to the total market capitalization of other competitors.
Tether has been criticized for years due to the "lack of transparency in reserve assets". Last month, The Wall Street Journal pointed out that U.S. authorities are conducting a comprehensive investigation into Tether, suspecting serious violations of sanctions and money laundering allegations.
It is reported that the investigation mainly focuses on the company's transparency regarding its dollar reserves and the potential impact on the stability of the cryptocurrency market, but Paolo Ardoino quickly denied the news, stating that The Wall Street Journal is merely sensationalizing old news.
"Tether's Q3 net profit is $2.5 billion, and U.S. Treasury reserves have exceeded $100 billion". This article was first published by (BlockTempo).