Tether’s Financial Resurgence: $700M Q4 Net Profit & No More Commercial Paper

Tether’s Financial Resurgence in 2022

• Tether had been beleaguered throughout 2022, but managed to improve its financial situation drastically with a $700 million Q4 net profit.
• This allowed them to get the commercial paper off of their books, confirmed by an attestation report from BDO Italia at the end of December 2022.
• Tether has proven its stability and resilience in handling bear markets and black swan events, issuing over $10 billion of USDT.

Overview

Tether (USDT) is a stablecoin pegged to the US dollar that has been amidst much FUD (fear, uncertainty and doubt) due to its ‘dubious’ backing of the US dollar-pegged token. Despite this, Tether was able to improve its financial situation drastically in late 2022 with a $700 million Q4 net profit, allowing it to settle all commercial paper obligations as verified by BDO Italia. This is indicative of Tether’s stability and resilience against bear markets and black swan events – having issued over $10 billion worth of USDT during this period.

Commercial Paper Backing

Upon FUD upon FUD (fear, uncertainty, doubt) has been heaped upon the company behind the Tether USDT stablecoin for quite some time now, and much was made of the ‘dubious’ backing of the US dollar-pegged token. A large part of which was commercial paper – debt securities issued by corporations that mature within 270 days or less. The improved finances have allowed Tether to get the commercial paper off of its books; giving itself a target to do so by the end of 2022 and an attestation report provided by top-5 accounting firm BDO Italia at the end of December 2022 confirming this fact.

Consolidated Reserves Report

The attestation report vouched for the integrity of Tether’s own Consolidated Reserves Report, stating that there was no longer any commercial paper backing on their books; that it had $67 billion in consolidated assets; and that it held excess reserves amounting at least $960 million. Paolo Arduino CTO at Tether said: “After a tumultuous end to 2022, Tether has once again proven its stability […]” He added: “Last quarter, Tether generated over $700 million in profits […]”

Audit Requirement

The only real question mark against Tether’s financial situation is that a third-party attestation is only really a snapshot at a particular time – not an equivalent full financial audit which would allow unrestricted access into their accounts books. Until such time that they do undergo such an audit suspicions from some detractors will remain despite these developments regarding their financial resurgence in late 2021-2022 periods .

Disclaimer

This article is provided for informational purposes only – not offered or intended as legal/tax/investment/financial advice.