On one hand, the global economy is in the midst of a banking crisis. On the other, crypto assets have been thriving and attaining new 2023 highs. In fact, companies from the ecosystem are also expecting to churn out profits. USDT stablecoin issuer Tether is one such name. Recently, Tether’s Technology Chief told CNBC that Tether could register about $700 million in profits in the first quarter of this year. That will make its total excess reserves surpass the $1 billion threshold.
Here, it is worth recalling that the company registered the same $700 million in profit during the December quarter. Tether’s reserves were boosted by the aforementioned profit. As Watcher Guru reported, Tether’s consolidated total assets stood around $67.04 billion at that time, while its consolidated total liabilities were at least $66.08 billion. In all, it had a surplus reserve of at least $960 million.
According to CNBC,
Paolo Ardoino, Tether’s chief technology officer, said the company estimates that the excess reserves will increase by $700 million in the current quarter, which is not yet over. That would take Tether’s excess reserves to $1.66 billion. And it would be the first time Tether crosses the $1 billion mark.
Also Read: Tether Witnessed $700M Profits in Q4, 2022 Amidst Bear Market
Tether thrives despite macro fragility
The executive went on to assert that the money will remain in Tether, in the main company, to “further capitalize the stablecoin.” Opining on the macro-instability and commenting on how Tether has been performing in the face of adversity, Ardoino said,
“Tether is making money and banks are failing. So if you have to put money somewhere, I guess that Tether is the most safe among all the choices.”
The value of all the USDT in circulation has noted a swift incline this month. On March 1, Tether’s market cap stood around $70.94 billion. However, at press time, it was seen hovering around $78.5 billion. The USDC, BUSD, and banking crises have all been a blessing in disguise for USDT.
Also Read: After Silvergate, Stablecoins Use for Crypto Trading Likely to Improve