Tether — The USDT stablecoin issuer is expected to make a profit of $700 million in the first quarter of 2023, equaling the profit of the final quarter of 2022, according to Tether Chief Technology Officer Paolo Ardoino at Paris Blockchain Week 2023.
“I still don’t know the final number. But this quarter’s profit is likely to be the same as the last quarter of 2022,” Ardoino said, adding that in Q4 2022 Tether made $700 million in profit, adding that Tether had “an additional $950 million” to date. December 31, 2022
“That means our company equity will increase to $1.5 billion or $1.7 billion. Which is above the reserves that we have, which are reserved 100% of the assets.
Tether executives go on to say that USDT is becoming “The safest asset in the world” because the company differs from banks. He referred to the ongoing crisis in the US banking system. Banks such as Silicon Valley Bank (SVB) collapsed due to problems with the fractional reserve model.
Tether aggressively reduced its holdings of commercial paper last year. and ultimately zero by the end of 2022, and Tether will also replace those investments with US treasury bills.
USDT’s market cap has increased by about $8 billion since Feb. 28. At the time of writing, USDT’s market capitalization is $79 billion. which is the highest since May 2022. followData Data from CoinGecko
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