Tether Posts Record Profit; Stablecoin Nears $100 bn Market Cap
Tether reported a record-breaking $2.85 billion in profits last quarter, as its flagship token, USDT, neared a $100 billion market capitalization.
The profit was primarily driven by the appreciation of Tether’s other investments, such as bitcoin and gold. The company booked $6.2 billion in net operating profits last year, with $4 billion from interest earned on Treasury holdings.
Tether has benefited from the Federal Reserve’s campaign of raising interest rates to combat inflation, as it lifted payouts from fixed-income investments.
As of December 31, Tether disclosed $97 billion of assets in reserve against $91.6 billion in liabilities, resulting in $5.4 billion of excess reserves backing Tether’s stablecoins.
(With inputs from Shikha Singh)
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