Tether Soars High: A Whopping 85.7% in Cash Equivalents and A Boost in USDT’s Excess Reserves!
Unveiling the Q3 Financials
Tether, the issuer of the USDT stablecoin, unveiled its Consolidated Reserves Report (CRR) for Q3 2023, audited by the globally-renowned accounting firm BDO. The key stats are in:
- Total Assets: Approximately $86,384,653,832
- Total Liabilities: $83,176,997,409, of which $83,153,363,663 is backed for USDT issuance.
Historical Peak in Cash Equivalents
Cash and cash equivalents under Tether’s umbrella have reached an all-time high, accounting for 85.7% of the total reserves. This includes a staggering $72.6 billion in US Treasury bills, reinforcing the liquidity and stability of the stablecoin ecosystem. Moreover, Tether’s external secured loans decreased by more than $330 million compared to the previous quarter.
Impressive Investment Returns
Investments in cash and cash equivalents for Tether reaped close to $1 billion in returns during Q3. Notably, Tether has poured over $800 million into sectors like sustainable energy, Bitcoin mining, data, and P2P technology since the beginning of the year. Of this, $668 million was invested in the third quarter alone, and these funds did not come from Tether’s reserves.
Excess Reserves: Standing Strong Amidst Market Volatility
Despite the fluctuations in gold and Bitcoin markets, Tether’s buffer of excess reserves remains steady. By the end of Q3, the value of gold in inventory dropped by $116 million and Bitcoin by $195 million. However, the rise in the value of gold and Bitcoin in October has been a bolstering factor for Tether’s financial health.
A Snapshot of Excess Reserves Growth
As of September 30, Tether accumulated excess reserves of $3.2 billion with $2 billion in secured loans. By the end of October, this was estimated to have surged to $4.2 billion, with only $900 million in secured loans.
USDT Dominance on the Rise Once Again
According to Glassnode, USDT’s market dominance had significantly shrunk to around 44% last year, giving way to its competitor USDC which soared to nearly 38%. However, USDT’s market dominance has been steadily climbing back, reaching nearly 70% by the end of September, while USDC’s share receded to about 21%.
Keywords: Tether, USDT, Cash Equivalents, BDO, Q3 Report, Reserves, US Treasury Bills, Investments, Market Volatility, Excess Reserves, Glassnode, USDC, Stablecoin, Consolidated Reserves Report
