On July 31, Tether, a leading stablecoin issuer in the cryptocurrency market, released its asset verification report for Q2 2023. According to the report, Tether’s reserves increased to $3.3 billion, surpassing the previous quarter’s figure of $850 million.
Tether’s reserves are considered its private stash, but they are also committed to backing the stablecoin USDT when necessary. The report also revealed that Tether generated approximately $1 billion in profits in the past three months, mainly through holding U.S. Treasury bills (T-bills). In May, the company reported a net profit of $1.45 billion in Q1 2023.
Despite its impressive financial performance, Tether remains under close scrutiny and supervision from regulatory authorities due to its crucial role in global digital asset transactions. In June, the company faced a series of baseless FUD (Fear, Uncertainty, and Doubt) rumors after leaked documents related to a 2021 lawsuit with the New York authorities. However, Tether swiftly clarified that all Chinese commercial paper had been entirely removed from its reserve assets for USDT.
During Q2, USDT’s market capitalization continuously reached new highs, surpassing the record of $83.8 billion.