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Cryptocurrency firm Tether estimates it will post a profit of $700 million in the March quarter, bringing its total excess reserves to more than $1 billion, the company’s technology chief told CNBC, revealing the latest figures for the first time. made it
tether issue USDT A stablecoin pegged 1:1 to the US dollar. USDT is backed by real-world assets such as fiat currencies and US Treasuries, so it is always 1:1 redeemable with US dollars.
Stablecoins are used by traders to move in and out of various cryptocurrencies without converting their money into fiat currency.
Over the years, stablecoin issuers have been criticized for not being sufficiently transparent about the types of assets they hold in reserves to back their digital currencies. Tether held commercial paper, or short-term unsecured debt issued by companies. However, Tether did not disclose the type of company or geographic location that caused the debt.
Tether eventually sold all of its commercial assets and moved into US Treasuries, which are seen as a more stable and reliable asset. A company produces a so-called certificate, which is a report prepared by an auditor to certify the company’s reserves and assets held.
Tether’s latest report released for the December quarter showed more assets than liabilities.
Tether then revealed in February that it made a profit of $700 million in the December quarter. After deducting debt, the company’s total assets are he $960.6 million.
Tether’s chief technology officer, Paolo Ardoino, said the company estimates it will add $700 million to its excess reserves in the current quarter, but that’s not over yet. This brings Tether’s excess reserves to $1.66 billion. And this is the first time Tether has surpassed his $1 billion mark.
“Therefore, this money will stay in the main company Tether to further capitalize the stablecoin,” Ardoino said.
Tether earns from various fees, including a $1,000 withdrawal fee (minimum withdrawal amount is $100,000). From investing in digital tokens and precious metals. From issuing loans to other institutions.
Circle Wobble Helps Tether
The value of all USDT in circulation this month surged from $70.98 billion on March 1 to $78.14 billion on Thursday, according to CoinMarketCap.
Tether’s chief technology officer, Paolo Ardoino, said he estimates the company’s surplus reserves will increase by $700 million in the current quarter, but that’s not over yet.
Justin Tallis | Afp | Getty Images