- Tether announces $1.6 billion in excess reserves to back USDT stablecoin.
- Tether faces regulatory scrutiny and criticism for its lack of transparency and alleged involvement in market manipulation.
- USDT’s market cap has grown significantly in recent weeks, and the announcement assures investors that sufficient reserves back the stablecoin.
Tether, the cryptocurrency firm that issues the popular USDT stablecoin, has announced it has around $1.6 billion in excess reserves to back the digital currency. The company’s technology chief, Paolo Ardoino, revealed the latest figures to CNBC, indicating that Tether is on track to make a profit of $700 million in the first quarter of 2023.
EXCLUSIVE: Tether says it has around $1.6 billion in excess reserves to back its USDT stablecoin. Fiery comments from @paoloardoino as he tells me the firm estimates it made $700 million profit in the current quarter, adding to its reserves $USDT https://t.co/PxJXaT1F1f— Arjun Kharpal (@ArjunKharpal) March 24, 2023
The announcement comes as Tether faces mounting scrutiny from regulators, who have raised concerns over the company’s ability to back its stablecoin with assets fully. However, Ardoino defended Tether’s record, stating that the company’s reserves exceed the amount of USDT currently in circulation.
Tether’s USDT stablecoin has also seen substantial growth this month, with its value in circulation jumping from $70.98 billion on March 1 to $78.14 billion on Thursday, according to CoinMarketCap. This growth is partly due to the recent news about rival Circle’s exposure to the now-collapsed Silicon Valley Bank, which has prompted many people to turn to USDT.
Despite the controversies surrounding Tether, the company’s latest announcement is likely to be welcomed by investors and crypto enthusiasts alike. It provides reassurance that sufficient reserves back the stablecoin. With the crypto market gaining momentum, Tether’s future looks bright as long as it can maintain transparency and reliability in its operations.
However, Tether’s troubles with regulators are far from over. The company has faced criticism for its lack of transparency and alleged market manipulation involvement. Earlier this year, Tether settled with the New York Attorney General’s office over allegations that it covered up the loss of $850 million in customer funds.
Tether’s announcement of excess reserves and projected profits are likely to be welcomed by investors and crypto enthusiasts, as it guarantees that the stablecoin is backed by sufficient reserves. However, the company continues to face scrutiny from regulators and critics over its lack of transparency and potential risk to the overall stability of the crypto market.
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