Tether Reports Strong Q3 with $2.5B Profit, US Treasury Holdings Top $100B

Stablecoin issuer Tether on Thursday announced a $2.5b net profit for the third-quarter, bringing its year-to-date earnings to $7.7b. This pushed the company’s equity to a record $14.2b this year, it said.

Additionally, its USDT circulation reached nearly $120b this quarter, marking a 30% increase in tokens released during 2024.

Further, Tether reported nearly $120b USDT in circulation this quarter, showing a 30% increase in USDT issuance year-to-date.

Tether Increases Excess Reserves by 15%

The company also stated that its reserves now exceed $105b in cash and equivalents, with $102.5b invested in US Treasuries. If Tether were considered a sovereign entity, this amount would place it among the top 18 global holders.

Additionally, the stablecoin issuer increased its excess reserve buffer by 15% this year, now totaling over $6b. Its gold holdings generated around $1.1b in unrealized gains this quarter.

Tether released attestation for Q3/2024.
Another impressive quarter.

Summary as of 30 September 2024 for the companies managing stablecoins' reserves:

– $2.4 billion Q3/2024 net profits (~$1.3 billion deriving from U.S. Treasuries exposures and ~$1.1 billion from gold holdings)… https://t.co/kBRdCQfaOP

— Paolo Ardoino 🤖🍐 (@paoloardoino) October 31, 2024

Financials Show $125.5B in Assets, $105B in Cash and $4.9B in Gold Holdings

According to BDO Italy’s accounting report, Tether International Limited and Tether Limited disclosed holding $125.5b in assets against $119.4b in liabilities as of Sept. 30. This increased Tether’s excess reserves backing its stablecoins to over $6b.

The report noted that $105b of the reserve assets were in cash and cash equivalents, with $84.5b invested in US Treasury bills. Its total exposure to T-bills, including direct holdings and investments via money market funds and reverse repurchase agreements, topped $102b.

Additionally, Tether held $4.9b in gold and $4.7b in bitcoin (BTC). Tether’s investment arm owns an additional 7,100 bitcoins.

CEO Dismisses Rumors About US Probe

In July 2022, Tether started working with BDO Italia for attestations. This move aimed to provide regular updates on the assets backing its USDT tokens. The partnership sought to boost confidence among investors and regulators in the stability and proof of its stablecoin, especially after past controversies over transparency and reserve adequacy.

Last week, the Wall Street Journal reported that US federal investigators were looking into Tether for possible violations of sanctions and anti-money-laundering laws. In response, CEO Paolo Ardoino dismissed the report, calling it “old noise.”