Tether has up to $3.3 billion in surplus reserves and $72.5 billion in US Treasury notes.

Tether has disclosed its most recent reserves attestation for USDT, raising its excess reserves to $3.3 billion.

According to its most recent financial attestation for the second quarter of 2023, Tether continues to build its treasury reserve assets backing circulating USDT -1$ tokens. 

Tether Holdings released its Q2 attestation from accounting firm BDO, indicating a $850 million increase in excess reserves to $3.3 billion.

The report also marks the first time the company has disclosed its indirect exposure to US Treasurys held by money market funds, as well as US Treasurys collateralizing its overnight repo:

“By adding them all together, the amount of Treasuries backing Tether’s stablecoins comes to about $72.5 billion.”

In the aftermath of the collapse of FTX and bankrupt cryptocurrency lending firms such as Three Arrows Capital, Tether has tried to allocate company revenues to build up surplus reserves. The excess does not include the 100% reserves that Tether keeps on hand to redeem circulation USDT tokens.

Ardoino stated that industry players who have undercollateralized assets or operations have created weak places in the larger cryptocurrency ecosystem, which has led its choice to allocate shareholder revenues to developing a huge surplus reserve.

“We believe that open communication and strong financials foster trust and reliability, which is what the global community deserves, especially after a year marred by numerous failures in the banking and cryptocurrency industries.”

Tether forecasted $1 billion in operational income from April to June 2023, a 30% increase from Q1 2023. The increased quarterly performance also reflects a wider surge in cryptocurrency markets, which was fueled by Bitcoin’s recent consolidation. BTC $29,250 around the $30,000 mark.

According to the 2023 Q2 report, 85% of Tether’s reserves are invested in “liquid” investments like as cash or cash equivalents. Tether’s total assets are estimated to be $86.4 billion based on the most recent reserve attestation. The outstanding liabilities of Tether related to circulation USDT coins are expected to be $83.17 billion.

Tether’s owners will also conduct a $115 million share repurchase to “strengthen” the group, according to the Q2 report. Profits from the second quarter will also go toward “other investments in energy-related initiatives.”

The corporation says that energy-related efforts are not included in its attestation report since the investment is not considered a suitable reserve for circulating tokens. 

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