• Tether, the company behind the USDT stablecoin, has managed to improve its financial situation drastically and ended 2022 with a $700 million net profit.
• Tether was able to get all of its commercial paper off its books by the end of 2022 and an attestation report from BDO Italia confirmed this.
• The only question mark against Tether’s financial situation is that it has yet to undergo a full financial audit which would give unrestricted access to its books.
Tether Improves Financial Situation
Beleaguered throughout 2022, Tether has managed to improve its financial situation drastically and top it all with a $700 million Q4 net profit. A large part of which was commercial paper, however the improved finances have allowed Tether to get the commercial paper off of its books. It had given itself a target of doing this by the end of 2022 and an attestation report, provided by top-5 accounting firm BDO Italia at the end of December 2022, confirmed this.
BDO Italia Attestation Report
The report vouched for the integrity of Tether’s own Consolidated Reserves Report, stating that there was no longer any commercial paper backing, that it held $67 billion in consolidated assets, and that it held excess reserves of at least $960 million. Paolo Arduino, CTO of Tether commented on his company’s progress: “After a tumultuous end to 2022…we are proud of how Tether has continued to be a driving force in rebuilding trust within the crypto industry”.
Continued Organic Growth
Not only were they able to smoothly execute over $21 billion dollars in redemptions during chaotic events last year but also issued over $10 billion USD₮ as an indication for continued growth and adoption for their product. This quarter alone generated over $700 million in profits adding onto existing reserves showing stability even under bear markets or black swan events.
Question Mark About Financial Audit
The only real question mark against Tether’s financial situation is that a third-party attestation is only really a snapshot at a particular time and not confuse with full financial audit which would allow full and unrestricted access to books. Until such time that they do undergo such an audit suspicions will remain among some detractors .
Disclaimer
This article is provided for informational purposes only; not offered or intended as legal, tax, investment advice etc..