USDT surplus reserves reach $3.3 billion in Q2

Tether, the issuer of the USDT stablecoin, released its consolidated reserves report for Q2, showing consolidated assets of at least $86.5 billion against total liabilities of at least $83.2 billion.

During the first quarter, Tether had total consolidated assets of $81.8 billion, most of which was in the US Treasury assets.

Tether reported an excess reserve of about $850 million, totalling about $3.3 billion as of June 30, “The excess reserves are the company’s own profits not distributed to shareholders and the company has decided to withhold in addition to 100% of the reserves that Tether maintains to protect all its tokens in custody.” The company added in the statement.

Tether’s Second Quarter Consolidated Reserves Report, a certified financial statement by accounting firm BDO that explains what the company owns and owes, claims that 85% of Tether’s reserves are made up of cash and its equivalents.

USDT, the world’s largest stablecoin, is backed by Tether reserves to provide an additional layer of protection for its tokens. The market value of Tether’s coins is about $84 billion, making it the third-largest crypto asset.

Tether earlier consented to submit quarterly reports on its reserves for two years as part of a 2021 deal with the New York Attorney General’s office.

The report also detailed Tether’s $72.5 billion investment in government assets, which includes direct ownership of US Treasury bonds as well as indirect holdings through money market funds and mutual funds using short-term debt instruments as investments.

The company posted a 30% increase in operating profit from the previous quarter, earning more than US$1 billion from April to June.

The company also announced a $115 million share buyback and other investments in earnings-funded energy-related initiatives this quarter.