Summary

Tether Holdings Limited, the company behind the USDT stablecoin, reported that its excess reserves grew to $3.3 billion in the second quarter of 2023. The company disclosed this information in an attestation report prepared by accounting firm BDO. The report also confirmed operational profits of over $1 billion for the quarter. Tether’s consolidated liabilities were approximately $83.17 billion, with exposure to US Treasuries totaling $72.5 billion.

FAQ

What is Tether?

Tether is a stablecoin cryptocurrency that is pegged to the value of a fiat currency, usually the US dollar. It is designed to maintain a stable value and is often used for trading and storing value in the cryptocurrency market.

How does Tether maintain its value?

Tether maintains its value by being fully backed by reserves, typically in the form of US dollars or other fiat currencies. These reserves are held by Tether Holdings Limited and are audited by accounting firms to ensure transparency and prove that the stablecoin is fully backed.

What are excess reserves?

Excess reserves refer to the amount of reserves held by Tether Holdings Limited that exceeds the amount of Tether tokens in circulation. These excess reserves provide a cushion of additional funds to ensure that the stablecoin remains fully backed even in periods of high demand or market volatility.