Tether boasts of its financial stability after strong profits, money moved out of banks

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Tether boasts of its financial stability after strong profits, money moved out of banks
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Tether says “I told you so” with upbeat Q1 attestation.

Stablecoin operator Tether Holdings pulled over $4.5 billion out of banks in the first quarter of 2023, causing a “substantial reduction” in counterparty risk, the company reported in a postTether’s market capitalization grew from $66 billion to over $82 billion in the first quarter, while Tether shed over 90% of its bank deposits, bringing it down from $5.3 billion to $481 million.

Simultaneously, Tether boosted its United States Treasury bills to a new high of over $53 billion, or 64% of its reserves. Combined with other assets, Tether’s USDT token is now backed by 85% cash, cash equivalents and short-term deposits “that can be sold rapidly to process redemptions.” That includes over $7.5 billion in repo facilities. In addition:

“Decade-high yield rates drive revenues up, increasing Tethers surplus reserves, effectively overcollateralizing USDT.”

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