USDT issuer Tether has as much as $1.7B in extra reserves, CTO says

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Cryptocurrency agency Tether, which points the stablecoin USDT (USDT), expects to make a $700 million revenue within the first quarter of 2023, matching the income of the final quarter of 2022, Tether chief know-how officer Paolo Ardoino instructed Cointelegraph at Paris Blockchain Week 2023.

“I don’t have the ultimate figures but, however the revenue of this quarter will most likely match the final quarter of 2022,” Ardoino mentioned, including that in This fall 2022, Tether generated $700 million of income. He added that Tether additionally has an “addition to that $950 million” at Dec. 31, 2022, noting:

“So it signifies that our firm fairness will develop to $1.5 billion or $1.7 billion which are on prime of the reserves that we’ve got which are backing 100% of the property.”

Tether CTO went on to say that USDT is turning into extra the “most secure asset to carry on the earth” as a result of the corporate is totally different from the banks which are based mostly on the fractional reserve mannequin. He particularly referred to the continuing disaster in the USA banking system, with banks like Silicon Valley Financial institution (SVB) collapsing resulting from its fractional reserve mannequin.

Ardoino additionally talked about that he had been a fan of the key cryptocurrency Bitcoin (BTC), which is Tether’s hedge, stating:

“I really like Bitcoin and that is our hedge and that is why we’re in Bitcoin, as a result of we do not belief these guys that they took a lot danger on buyer deposits.”

AS beforehand reported, Tether was aggressively chopping its business paper backing final yr, ultimately lowering it to zero by late 2022. Along with eradicating business paper from its reserves, Tether was changing these investments with U.S. Treasury Payments.

The information comes amid Tether persevering with to extend its market dominance, with USDT’s market capitalization including about $8 billion since Feb. 28. On the time of writing, USDT market worth stands at $79 billion, which is the very best degree since Might 2022, in accordance with knowledge from CoinGecko.

USDT market capitalization one-year chart. Supply: CoinGecko

Whereas USDT market dominance has been on the rise, Circle’s rival stablecoin USDC has been dropping its market share, with market cap dropping 18% since late February.

Associated: Tether CTO on USDC depeg: ‘Bitcoin maxis have been proper all alongside’ | PBW 2023

Circle has confronted main points resulting from its publicity to the collapse of SVB, with the USDC stablecoin briefly dropping its 1:1 peg with the U.S. greenback. The stablecoin subsequently re-pegged amid Circle asserting Cross River as a brand new banking accomplice and increasing ties with BNY Mellon.

Journal: Unstablecoins: Depegging, financial institution runs and different dangers loom