Tether Holdings, the company behind the world’s largest stablecoin (USDT), reported a record net profit of $4.52 billion in the first quarter of 2024.
Tether also revealed its net equity for the first time, which stands at $11.37 billion as of March 31. This represents a significant increase from the $7.01 billion worth of equity recorded at the end of December 2023, according to Tether’s attestation report for the first quarter of 2024.
Approximately $1 billion stemmed from operating profits derived from United States treasury holdings, while the remainder of $3.52 billion comprised the market-to-market gains in the firm’s Bitcoin (BTC) and gold positions.
Tether’s USDT is the world’s largest stablecoin worth over $110 billion according to CoinMarketCap data. The company issued $12.5 billion worth of USDT in the first quarter of the year.
The report also revealed a $1 billion increase in excess reserves that are maintained as a buffer to support the company’s stablecoin offerings. Tether’s excess reserves stood just below $6.3 billion.
The report further revealed over $104 billion worth of liabilities related to “digital tokens issued,” while the value of Tether’s reserve assets exceeded the value of its liabilities by over $6.2 billion, as of March 31.
Related: Circle’s USDC overtakes Tether’s USDT in stablecoin transactions — Visa
This is a developing story, and further information will be added as it becomes available.
