• Tether has managed to improve its financial situation drastically and top it all with a $700 million Q4 net profit.
• This was achieved by getting commercial paper off of its books, giving itself a target of doing this by the end of 2022 and an attestation report, provided by top-5 accounting firm BDO Italia at the end of December 2022.
• The report vouched for the integrity of Tether’s own Consolidated Reserves Report, stating that there was no longer any commercial paper backing, that it had $67 billion in consolidated assets, and that it held excess reserves of at least $960 million.
Tether’s Improved Financial Situation
The beleaguered token behind the USDT stablecoin, Tether (USDT), has managed to make drastic improvements to its financial situation during 2022. After much criticism over its ‘dubious’ backing of the US dollar-pegged token through commercial paper, Tether has now been able to get rid of this form of backing altogether. An attestation report at the end of December 2022 provided by BDO Italia confirmed this achievement.
Reserves Vouched For
The attestation report vouched for the integrity of Tether’s own Consolidated Reserves Report. This included confirmation that there was no longer any commercial paper backing and that it had $67 billion in consolidated assets as well as holding excess reserves amounting to at least $960 million.
Statement from CTO
Paolo Arduino, CTO for Tether made a statement on their website expressing his pride at how they have handled bear markets and black swan events during such a tumultuous year-end: “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” he said before adding: “Last quarter, Tether generated over $700 million in profits”.
Question Mark Remains
Although these improved finances are promising news for Tether supporters there is still a question mark against them until they undergo full financial audit allowing unrestricted access to their books – something which is yet to happen despite calls from some detractors.
Overall then despite some reservations regarding full transparency into their accounts etc., it appears that Tether has managed to turn around their fortunes considerably throughout 2022 – resulting in a substantial Q4 net profit as well as removal from their balance sheet all forms of commerical paper backing FUD upon FUD (fear uncertainty doubt).