Amid the banking turmoil in the United States, Tether (USDT) emerged as the preferred stablecoin.

The resurgence was evident in its latest attestation report, which revealed that the stablecoin issuer recorded a net profit of nearly $1.5 billion in the first quarter of 2023.

• According to the official statement, Tether’s excess reserves reached an all-time high of $2.44 billion in Q1, as compared to $960 million at the end of Q4 2022.
• The stablecoin ended the first quarter of the year with $81.8 billion in consolidated total assets, while its consolidated total liabilities stood near $79.4 billion.
• Tether’s reserves included additional categories such as bitcoin, physical gold, overnight repo, and corporate bond allocations. Its Bitcoin holdings were recorded to be $1.5 billion, while that of precious metals accounted for $3.3 billion.
• 85% of the stablecoin issuer’s investments are being held in cash, cash equivalents, and other short-term deposits. Gold and bitcoin represent approximately 4% and 2% of the total reserves, respectively,
• Tether said it is doubling down its focus on limiting its reliance on pure bank deposits as a source of liquidity and “instead leverages the Repo market as an additional measure to ensure higher standards of protection for its users by maintaining the required liquidity.”
• Commenting on the quarterly profit, Paolo Ardoino, CTO of Tether, stated,

“We are thrilled with the tremendous success Tether has achieved in Q1 2023. Looking ahead to Q2, we have an extremely positive outlook and remain committed to transparency, which is why we have introduced new categories in the reserves’ breakdown in our quarterly report to provide even greater transparency to our users.”