Tether's Stablecoin Supply Surges to 104 Billion

Positive Sentiment

Tether's meteoric rise in 2023, with a 104 billion USDT supply and robust financials, cements its position as a stablecoin powerhouse in the crypto realm.

In the dynamic world of cryptocurrencies, Tether, the leading stablecoin issuer, has been making waves with its unprecedented growth. As of February 26, the total supply of USDT, Tether's stablecoin, surged to 104 billion, firmly establishing its position as a key player in the market.

Tether's remarkable ascent mirrors the broader cryptocurrency market's surge in 2023, propelled by significant events such as the launch of US spot Bitcoin ETFs. Starting the year with a market capitalization of $91.69 billion, Tether has emerged as a stalwart in the crypto financial landscape.

Paolo Ardoino, Tether's CEO, provides assurance that the company has issued 99.5 billion tokens, each pegged 1:1 to the US dollar and backed by liquid assets, predominantly in US Treasury bills. Notably, Tether maintains an impressive $5.4 billion in excess reserves, solidifying its credibility and trustworthiness.

Tether's expansive growth has widened the gap between itself and its competitor, Circle's USDC stablecoin, boasting a circulating supply of 28.9 billion. A recent attestation report showcases Tether's stellar performance in Q4 2023, with a net profit of $2.9 billion, primarily fueled by appreciating holdings in US Treasuries, Bitcoin, and gold.

BDO Italia, an independent accounting firm, confirms that Tether's outstanding unsecured loans of $4.8 billion are fully covered by excess reserves, alleviating community concerns regarding the security of loans within Tether's portfolio. The company's core business, the USDT stablecoin, played a pivotal role in generating a substantial $6.2 billion annual net profit.

Tether's strategic moves include acquiring 8,888 Bitcoins in Q4, contributing to a total holding of approximately 66,465 BTC, valued at around $2.8 billion. As of December 31, 2023, Tether's consolidated reserves stand at a formidable $97 billion, with significant holdings in US Treasuries ($80.3 billion) and gold ($3.5 billion).

Tether's journey in 2023 showcases not only robust growth but also financial prudence and transparency. With a positive net profit, strategic acquisitions, and a solid reserve base, Tether emerges as a reliable and influential player in the cryptocurrency space, contributing significantly to the ongoing evolution of digital finance.