Stablecoin Issuer Tether Q4 Profit At $700 mn
Tether, the creator of the world’s largest stablecoin, USDT, announced that it no longer holds any commercial paper – a type of short-term, unsecured debt – having met its target date for doing so. In a blog post, the company also announced a $700 million profit for the fourth quarter.
Following the collapse of algorithmic stablecoin terraUSD (UST), which had a market capitalization of $18 billion prior to its demise, stablecoin issuers came under increased scrutiny last year. Tether first disclosed a breakdown of its reserves in May 2021, revealing that commercial paper accounted for 49% of its assets. Following attestation reports, the proportion of commercial paper on Tether’s books gradually decreased.
According to a BDO attestation, the company had $67 billion in assets and $66 billion in liabilities as of December 31, almost all of which relates to digital tokens issued. More than 58% of its assets are US Treasury bills. Tether had $20.1 billion in commercial paper as of May of last year.
Secured loans were reduced by $300 million, as part of a plan to reduce them to zero this year.
(With inputs from Shikha Singh)
You need to login in order to Like
