02-09-2023 icon

Tether records $700M profit despite crypto winter 

By Lucy Adegbe

Tether, the company behind the USDT stablecoin, has recorded an annual profit of $700 million for the year 2022.

This comes despite the crypto winter that has lasted for about nine months.

The company holds enough reserves to back the token despite processing $21 billion in redemptions last year, according to its latest attestation report.

With USDT being backed by the U.S. dollar, Tether has to hold enough cash reserves for holders to turn their USDT into fiat dollars at any time. 

According to today’s report, the consolidated total assets held by the company as of December 31, 2022, amounted to at least $67,044,148,175.

That’s against total liabilities of $66,083,530,757, most of which is accounted for by issued USDT.

In a statement coinciding with the report’s release, Tether’s chief technology officer Paolo Ardoino said the company had been able to execute over $21 billion in redemptions during the various upheavals of 2022.

As Tether Faces Billions in Redemptions, Circle’s USDC Is Gaining Ground.

During a Crypto Winter, investors tend to stash a portion of their bull market gains in stablecoins to wait out the downturn.

“After a tumultuous end to 2022, Tether has once again proven its stability, its resilience, and its ability to handle bear markets and black swan events, setting itself apart from the bad actors of the industry,” he said.

Ardoino added that the final quarter of 2022 saw Tether generate $700 million in profits.