(Kitco News) - Tether Holdings Limited, the company responsible for issuing the USD? stablecoin, has released the results of its latest attestation report which shows that the firm ended 2022 with zero commercial paper on its balance sheet and at least $67 billion in consolidated total assets, along with excess reserves of at least $960 million.
The attestation report was released by BDO Italia, a top five-ranked global independent public accounting firm that partnered with Tether in August to provide regular reviews of the reserves held by the firm to verify that the circulating supply of USD? is fully backed.
According to the report, the majority of Tether’s investments are being held in cash, cash equivalents, and other short-term deposits, which means they are highly liquid. This is a significant improvement over last year's results, which showed a large portion of the company's reserves were backed by commercial paper, including Chinese commercial paper.
Tether managed to eliminate all commercial paper exposure by the middle of October, replacing those investments with U.S. Treasury Bills.
“This latest report demonstrates its commitment to transparency and highlights a $300 million reduction in secured loans, more than $700 million net profit added to Tether reserves in the last quarter 2022, and the highest percentage to date of assets allocated in US Treasury Bills, with direct exposure of over 58%,” the stablecoin issuer said.
Tether’s consolidated reserves report (CRR) also indicates that as of Dec. 31, the firm's consolidated assets exceeded its consolidated liabilities, which BDO confirmed. At the time, the company’s consolidated total assets were over $67 billion, while its consolidated total liabilities were slightly more than $66 billion, of which the vast majority “relates to digital tokens issued.”
“With the presentation of this latest consolidated reserve report, Tether continues to deliver on our promise to lead the industry in transparency,” said Paolo Ardoino, CTO of Tether. “After a tumultuous end to 2022, Tether has once again proven its stability, its resilience and its ability to handle bear markets and black swan events, setting itself apart from the bad actors of the industry.”
Ardonio went on to note that the company processed over $21 billion in redemptions in 2022, while also issuing over $10 billion of USD?, which points to the “continued organic growth and adoption of Tether.”
The CTO also added that Tether generated more than $700 million in profits in Q4 2022, which it has added to its reserves. “We are proud of how Tether has continued to be a driving force in rebuilding trust within the crypto industry and we are determined to continue to set a positive example for our peers and competitors alike,” he concluded.
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According to Tether’s transparency page, which claims to post a daily update on the value of the company’s reserves, the firm’s total assets are currently worth $69.14 billion, while its total liabilities are $68.18 billion, resulting in a shareholder capital cushion of $960.6 million.
In the limitations section of its report, BDO stated “Our opinion is limited solely to the CRR and the corresponding consolidated total assets and consolidated total liabilities” as of Dec. 31, 2022. “Activity prior to and after this time and date was not considered when testing the balances and information described above.” BDO also noted that it has “not performed any procedures or provided any level of assurance on the financial or non-financial activity on dates or times other than that noted within this report.”
