- Altether doubled its financial performance compared to the previous quarter.
- Tether’s latest report revealed interesting details about its consolidated reserves.
- The report shows Tether’s holdings of bitcoin and gold as of March 31st.
pregnancy, a prominent stablecoin issuer, recently released its latest endorsement report, which indicates a net profit of $1.48 billion for the first quarter of the year. This impressive number represents a doubling of the previous quarter’s results.
In the report, Tether for the first time detailed its holdings, revealing that as of March 31, the company was worth $1.5 billion. bitcoin On its balance sheet, it represents about 2% of its $80 billion in reserves. Additionally, Tether had $3.4 billion worth of gold, which is about 4% of its reserves.
This endorsement report comes at a time when the stablecoin market has faced a major upheaval. Many tokens have lost their peg to the dollar due to the US banking crisis affecting Circle USDCthe second largest stablecoin pegged to the dollar.
USDT surges in Tether: 24% market cap growth
Paxos It was forced to halt issuance of the third largest stablecoin, Binance USD (BUSD), by the New York Department of Financial Services in February. US Securities and Exchange Commission (SECIt is also reported to be investigating BUSD for issuing it as an unregistered security.
Despite these challenges, Tether’s USDT, the largest stablecoin with an offering of $81.8 billion as of May 9, has emerged as one of the clear winners in this period of instability.
token Market value It’s grown by $16 billion since the beginning of the year, which is a 24% increase. Cord problems too stablecoins It is pegged to other currencies and gold, and makes up a small portion of the total market capitalization of USDT.
on the flip side
- The recent turmoil in the stablecoin market, including the loss of the coin’s peg to the dollar by several tokens, highlights the need for more oversight and regulation of this fast-growing industry.
- The fact that Tether has such a large amount of Bitcoin and gold on its balance sheet raises questions about the potential concentration of risk.
- The latest endorsement report may not fully address concerns surrounding whether Tether’s USDT tokens are truly backed by the US dollar, as the company claims.
Why should you bother
Tether’s impressive first quarter report is a strong indicator of the company’s financial stability and boosts confidence in the stablecoin market. As the largest stablecoin with a large market cap, the success of Tether is good news for the entire crypto industry. A strong and reliable stablecoin market is crucial to the adoption and growth of cryptocurrencies.
To learn more about the impact of Bitcoin on the recent downturn in the stablecoin market cap, read here:
To get a better understanding of the upcoming US CPI data in the context of the recent rally in bitcoin, read here: