Tether, the Largest Stablecoin Issuer, Reports Record Profits in Q3

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Tether, the Largest Stablecoin Issuer, Reports Record Profits in Q3

Tether, one of the leading companies in the stable cryptocurrency sector, announced a net profit of $2.5 billion for the third quarter of 2023. This brings Tether's total profit for the year to $7.7 billion, reinforcing its leadership in the sector with a market value of USDT reaching $120 billion. CEO Paolo Ardoino noted that a significant portion of the profits came from the returns on U.S. Treasury assets and the appreciation of gold held in reserve. A 15% increase in the value of gold in the third quarter was one of the main factors triggering this profitable situation.

According to the financial statement approved by BDO Italy, Tether International Limited and Tether Limited reported reserve assets of $125.5 billion against $119.4 billion in liabilities as of September 30. Notable items among these assets included $105 billion in cash and cash equivalents and $84.5 billion in U.S. Treasury bonds. The company also carries a risk of over $102 billion from direct and indirect treasury bond investments. The reserve assets include $5 billion in gold and $4.8 billion in Bitcoin.

Tether Investments Continues to Grow
Tether Investments, Tether's investment arm, has increased its net equity from $6.2 billion in the previous quarter to $7.7 billion by expanding its investments in the fields of energy, mining, and artificial intelligence. The company also revealed that it owns 7,100 Bitcoins valued at approximately $500 million, further demonstrating its status as an active player in crypto investment. Tether's USDT product continues to serve as a primary source of liquidity on exchanges and a significant payment method in emerging markets.

Last week, a report in the Wall Street Journal indicated that Tether was facing allegations related to compliance with anti-money laundering laws and sanctions. However, the company denied these claims. CEO Paolo Ardoino emphasized in an interview that the company complies with U.S. sanctions and will continue to be a major buyer of U.S. debt.