Tether's CTO expects reserves to surpass $1 billion after its Q1 profit

The firm's CTO Paolo Ardoino said that the firm's CTO believes that the firm's aggregate surplus reserves will surpass $1 billion as a result of the Tether USDT USD's Q 1 profit of $700 million.

Tether is responsible for issuing the USDT stable coin, which maintains a one-to-one relationship with the U.S. dollar. The currency is backed by tangible assets such as fiat and U.S. Treasury bonds, guaranteeing its constant exchangeability with the U.S. dollar.

Tether previously held commercial paper, a form of short-term, unsecured corporate debt, but did not provide information about the specific companies or their locations from which it acquired the debt.

Tether liquidated all its commercial paper holdings and moved to U.S. treasuries, widely regarded as more stable and dependable assets.

The company issues attestations, which are audit reports that verify the company's reserves and assets.

The December quarter, the latest attestation of Tether, showed that its assets exceeded its liabilities.

In February, Tether disclosed a $700 million profit for the quarter, with assets fewer liabilities of $960.6 million.

66 billion dollars is the first time Tether surpasses the $1 billion mark.

Ardoino stated that this money stays in the main company in order to capitalize the stable coin. A minimum withdrawal amount of $100,000 in digital token and precious metals is one of the factors that tether derives revenue from various sources, as well as issuing loans to other institutions.

The value of allUSDT in circulation has gone from $70.98 billion on March 1 to $78.14 billion on Thursday, according to CoinMarketCap.

Ardoino shared Tether's estimated profit for the quarter, while defending the company's track record. In response to questions about Tether's ability to weather an event like the SVB crisis, Ardoino asked, first of all, seriously after Credit Suisse and all the others, all banks that are failing that you are looking again at Tether? He pointed out the stability at Credit Suisse CS, which ultimately led to a $3.2 billion deal in which UBS Group AG UBS acquired the Swiss bank.

Ardoino said that Tether is making money and banks are failing. If you have to put money somewhere, I guess that Tether is the safest of all the choices. Read Next: FTX Set To Reclaim $460 M From Bahamas-Based Hedge Fund In Settlement