Tether, the largest issuer of stablecoins, closed the first quarter of 2023 with a net profit of $1.48 billion, which doubled from the $700 million it had generated in the previous quarter. The company confirmed that its token circulation also jumped 20 percent.

Tether Reveals Bitcoin and Gold Holdings

According to the consolidated reserve report, signed by accounting firm BDO Italia, Tether’s total assets at the end of March stood at $81.8 billion, the majority of which are in US Treasury Bills.

Additionally, the stablecoin issuer holds $1.5 billion in Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term and $3.4 billion in gold on its balance sheet, 2 percent and 4 percent of its total reserve, respectively. It is the first time Tether has revealed its Bitcoin and gold holdings.

“We continue to monitor the risk-adjusted return on all assets within our portfolio on an ongoing basis and expect to make further changes as the overall economic environment changes and the market cycle progresses as a part of our normal, ongoing risk management processes,” said Paolo Ardoino, the CTO of Tether.

Tether discloses they’re trading bitcoin. Imagine a stablecoin that’s backed by highly volatile tokens which are manipulated by… tether.

Tether can inflate the price of bitcoin to cover up any shortfalls. pic.twitter.com/RX6EPpiEyP

— Bitfinex’ed 🔥🐧 Κασσάνδρα 🏺 (@Bitfinexed) May 10, 2023

The Largest Stablecoin Issuer

Tether is known for its US dollar-pegged stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term, USDT, which has more than $82.6 billion in market capitalization, according to Coinmarketcap. Moreover, the company issues cryptocurrencies pegged to other currencies and gold, but their market share is only a fraction of USDT.

On top of that, the company is continuously increasing its USDT circulation. In the three-month period from January and March, Tether held about $2.44 billion in excess reserves.

“Looking ahead to Q2, we have an extremely positive outlook and remain committed to transparency, which is why we have introduced new categories in the reserves’ breakdown in our quarterly report to provide even greater transparency to our users,” Ardoino added.

With the consolidated reports, Tether is now ensuring transparency in its operations. However, the company faced criticism earlier with allegations of not maintaining appropriate reserves. In 2021, Tether and its affiliate crypto exchange, Bitfinex, settled allegations of misleading statements brought by the US Commodity Futures Trading Commission, paying $42.5 million.

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