Tether, the leading stablecoin issuer, announced its financial results for the fourth quarter of 2023, showing a record-breaking net profit of $2.85 billion and a significant increase in its excess reserves. The results were verified by BDO, a top-ranked independent auditing firm, in its assurance opinion released on January 31, 2024.

According to the report, Tether generated about $1 billion in net operating profits from interests on US Treasuries, which accounted for over 80% of its total assets. The rest of the profits came from the appreciation of its Gold and Bitcoin reserves, which reached $3.5 billion and $2.8 billion respectively.

Tether also boosted its excess reserves by $2.2 billion to $5.4 billion, which represent the undistributed accumulated profits that back its tokens in circulation. The excess reserves fully cover the $4.8 billion in outstanding secured loans that Tether has issued, eliminating the risk of default. Tether stated that this was in response to the community's concerns about this part of its portfolio.

Moreover, Tether maintained a high level of liquidity and stability by issuing tokens backed by Cash and Cash Equivalent at 90%. The remaining 10% consisted of other asset classes, such as Gold, Bitcoin, and various strategic investments. Tether's CEO Paolo Ardoino said that the Q4 attestation underscores Tether's commitment to transparency, stability, and responsible financial management.

Read the full report here