Tether (USDT) continues to increase its treasury reserve holdings backing circulating USDT tokens, according to its latest financial attestation for the second quarter of 2023.
Tether Holdings published its Q2 attestation from accounting firm BDO, highlighting an $850 million increase to its excess reserves which takes its total to $3.3 billion.
Tether Excess Reserves increase by 850M to reach $3.3B as Leading Stablecoin Reveals $72.5B overall exposure in US T-Bills and Unveils Energy-Related Investments.Read more https://t.co/zoEHWMawEM pic.twitter.com/N4vk3EUQnw
The report also serves as the first time the company has disclosed its indirect exposure to United States Treasuries held by Money Market Funds as well as U.S. Treasuries collateralizing its overnight repo:
Speaking to Cointelegraph at Money2020 in Amsterdam in June, Tether CTO Paolo Ardoino revealed that Tether's US Treasury Bill holdings were equivalent to the amount held by sovereign nations like Mexico.
Tether has looked to allocate company profits to build up excess reserves in the wake of the collapse of FTX and bankrupt cryptocurrency lending firms like Three Arrows Capital. The excess does not include the 100% reserves that Tether maintains to redeem circulating USDT tokens.
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Ardoino said that industry players that have undercollateralized assets or operations have created weak points in the wider cryptocurrency ecosystem, which has driven its decision to allocate shareholder profits to building a large excess reserve.
Tether tipped its operation profits at $1 billion from April to June 2023, accounting for a 30% increase from Q1 2023. The improved quarterly performance also
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