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Q1 2023 Attestation

Tether Holdings Limited, the eminent issuer of the USDT stablecoin, recently publicized its assurance opinion for the first quarter of 2023, meticulously examined by BDO Italia, a distinguished independent accounting firm. The attestation solidifies the precision of Tether's Consolidated Reserves Report (CRR), offering a detailed representation of the assets under the group's control as of 31 March 2023.

One of the prominent findings of the report includes a net profit of $1.48 billion for Q1 2023, signaling a robust financial period for Tether. Accompanying this remarkable profitability was a 20% upsurge in the circulation of tokens, further substantiating the company's flourishing trajectory.

By the end of Q1 2023, Tether's consolidated total assets reached an impressive sum of $81.8 billion. The bulk of these reserves are strategically invested in US Treasury Bills, reflecting Tether's prudent approach to asset management.

Tether has been proactively taking measures to minimize its dependency on traditional bank deposits as its primary liquidity source. Q1 saw Tether significantly curtail its bank deposits from $5.3 billion to a mere $481 million. This strategic move considerably decreases Tether's exposure to counterparty risks, particularly those associated with potential bank failures, as these deposits are distributed across various banks rather than concentrated in one. This measure is particularly relevant given the current financial system's instability, which has adversely affected Tether's competitors due to their overreliance on bank deposits.

The market capitalization of USDT witnessed robust growth in Q1, expanding from $66 billion to over $82 billion. A total of $7.5 billion is currently allocated to overnight repo facilities, providing Tether with additional highly liquid collateral while minimizing counterparty risks.

Finally, Tether included categories for its Gold and Bitcoin holdings for the first time. These holdings constituted 4% of total reserves for Gold and 1.8% for Bitcoin, underscoring Tether's unwavering commitment to leading the industry in stablecoin transparency.