Tether’s Excess Reserves and Projected Profits Offer Reassurance

• Tether announces $1.6 billion in excess reserves to back USDT stablecoin.
• Tether faces regulatory scrutiny and criticism for its lack of transparency and alleged involvement in market manipulation.
• USDT’s market cap has grown significantly in recent weeks, and the announcement assures investors that sufficient reserves back the stablecoin.

Tether, the cryptocurrency firm that issues the popular USDT stablecoin, has announced it has around $1.6 billion in excess reserves to back the digital currency. The company’s technology chief, Paolo Ardoino, revealed the latest figures to CNBC, indicating that Tether is on track to make a profit of $700 million in the first quarter of 2023.

EXCLUSIVE: Tether says it has around $1.6 billion in excess reserves to back its USDT stablecoin. Fiery comments from @paoloardoino as he tells me the firm estimates it made $700 million profit in the current quarter, adding to its reserves $USDT https://t.co/PxJXaT1F1f

— Arjun Kharpal (@ArjunKharpal) March 24, 2023

The announcement comes as Tether faces mounting scrutiny from regulators, who have raised concerns over the company’s ability to back its stablecoin with assets fully. …

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