USDT Backing Bolstered by Tether Excess Reserves Soaring to $3.3bn
According to the stablecoin’s issuer, Tether (USDT), its excess reserves rose by hundreds of millions of dollars in the second quarter of 2023.
According to Tether Holdings, the total amount of its excess reserves rose by about 35% to $3.3 billion in the second quarter.
“In a continuation of Tether’s public commitment towards openness, it also reveals an increase in its excess reserves of about $850 million, bringing its total excess reserves to approximately $3.3 billion at the end of Q2, reinforcing the stability of Tether.”
Tether Holdings states that extra reserves come from company’s own profits – not distributed to shareholders and which the company has decided to keep on top of the 100% reserves that Tether maintains to back all the outstanding tokens.
According to its issuer, the stablecoin with the greatest market cap in the world achieved operating profits of nearly $1 billion in the second quarter, up 30% from the prior period.
The increase in Tether Holdings’ excess reserves comes as the market capitalization of the USDT stablecoin reaches a fresh record high.
The USDT market valuation is getting close to $84 billion, up 27% year to date. The market cap of USD Coin (USDC), the second-largest stablecoin by market cap, is now less than a third of USDT’s, at under $26.5 billion. Dai (DAI), the third-largest stablecoin by market cap, with a valuation of about $4.15 billion.
