Tether, the leading stablecoin issuer, reported a net profit of $1.5 billion for Q1 2023, according to a recent reserves report attested by BDO Italia.
The report includes a comprehensive outline of Tether's assets as of March 31, showing an increase in reserves to $2.44 billion. It also lists various new categories including physical gold.
The first quarter of 2023 saw Tether experiencing growth in terms of profit and the circulation of its token, which saw an increase of 20%. The company's total consolidated assets ended at $81.8 billion, with the majority being invested in US Treasury Bills.
Tether has also disclosed its plan to reduce its dependence on traditional bank deposits, choosing instead to engage with the Repo market. This move is aimed at ensuring enhanced safety and fluidity for its users.Paolo Ardoino, CTO of Tether stated that the net profits reflect the stability of the platform. Ardoino also added that Tether is continuously monitoring the global economic environment and is taking steps to protect its customers' funds.
However, former SEC official John Reed Stark has raised concerns about Tether's operations. In response to Tether's report, Stark emphasized that an attestation report is not equivalent to a traditional financial audit, expressing doubt about the financial stability of a firm like Tether operating without a certified financial audit. He also questioned the company's regulatory status, highlighting Tether's lack of SEC registration and the protection it offers to investors. Stark's concerns underscore the need for ongoing scrutiny of Tether's operations and regulatory compliance.