Tether Holdings Limited, the entity behind the stablecoin Tether, has reported "record net profits" for the final quarter of 2023, citing strong performance in Treasury interest and other assets. In the fourth quarter, Tether's net income reached $2.85 billion, with $1 billion attributed to net interest on U.S. Treasury securities, while the remainder came from Gold and Bitcoin Reserves. Tether's assurance report highlights the company's robust financial performance during this period.
With 125 employees, Tether achieved a net profit of $22.8 million per employee in the last quarter, as analyzed by Zippia. The company reported a total net profit of $6.2 billion for the entire year, with $4 billion originating from U.S. Treasuries and other non-crypto investments. Tether's diverse portfolio includes $80.3 billion in U.S. Treasuries, $2.8 billion in Bitcoin, $3.5 billion in gold, and $1.5 billion in venture capital. The stablecoin issuer strategically increased its backing with high-quality assets like Treasury bonds and gold reserves since 2022, a period marked by industry challenges and contagion fears.
In an effort to mitigate risks related to its portfolio, Tether claims to have accumulated $5.4 billion in excess reserves in 2023, covering outstanding secured loans of $4.8 billion. The stablecoin issuer asserts that it has successfully eliminated the risk associated with loans secured by token reserves, despite the widespread overcollateralization of such secured loans. BDO Global conducted a review of Tether's financials, adding transparency to the stablecoin issuer's operations.
Tether emerged as a winner during the cryptocurrency winter of the previous year, consolidating market share and establishing USDT as the leading stablecoin, representing over 70% of all stablecoins in circulation. Notably, Tether has taken steps to collaborate with law enforcement agencies, recently announcing the FBI's involvement on its platform to enhance efforts in monitoring and curbing illegal activities within the crypto space.
