Tether has reported a substantial $2.5 billion profit in the third quarter, bringing its year-to-date profits to an impressive $7.7 billion. This growth comes as the market capitalization of Tether’s USDT stablecoin approaches $120 billion, underscoring its position as a top stablecoin in the digital finance space.
According to the latest quarterly attestation by BDO Italy, Tether held $125.5 billion in assets to cover $119.4 billion in liabilities as of September 30. These excess reserves, valued at over $6 billion, strengthen Tether’s position in the market by ensuring a solid buffer of assets. Tether CEO Paolo Ardoino shared additional insights on X, noting that the profits were largely driven by yield from U.S. Treasury holdings, contributing $1.3 billion to the quarter’s earnings. Another $1.1 billion in profits came from the increase in gold’s value, which surged by roughly 15% over the quarter.
Tether’s reserve structure primarily includes cash and cash equivalents, with $84.5 billion invested in U.S. Treasury bills. Altogether, Tether’s exposure to Treasury bills, including money market funds and reverse repurchase agreements, surpassed $102 billion. Gold also plays a significant role in Tether’s reserves, with holdings amounting to $5 billion. Bitcoin rounds out the company’s reserve assets, with a holding of $4.8 billion.
The composition of Tether’s reserves reflects its strategy of balancing stable assets while maintaining a solid margin above its liabilities. This balance gives Tether a distinct edge in the stablecoin market, especially as it holds both traditional assets and commodities like gold and bitcoin, which offer added diversification and potential growth.