Tether's Latest Q1 2023 Report shows Collateral Reserve Surplus at All-time-High of $2.44 Billion

At the same time, net income growth was $1.48 billion amid a 20% increase in token volume outstanding; and in additional disclosure, Tether reported its assets in Bitcoin and gold for the first time.

On May 10, Tether Holdings Limited released its Q1 2023 financial report audited by BDO Italia, one of the world's top five independent accounting firms. The report includes, for the first time, additional items aimed at increasing the transparency of reporting Tether’s reserves. Physical gold reserves, overnight repo instruments, corporate bonds, and Bitcoin holdings were reported separately. The report showed an increase in Tether's excess reserves to a record high of $2.44 billion, up $1.48 billion from the previous quarter. BDO's independent attestation confirms that Tether's consolidated assets have consistently exceeded its consolidated liabilities.

Tether ended Q1 2023 with consolidated total assets of $81.8 billion, with most of its reserves invested in U.S. Treasury bills to provide collateral for the dollar peg. In terms of current troubling developments in the banking sector, the company has also taken steps to reduce its dependence on net bank deposits as a source of liquidity and has instead used the repo market as an additional tool to secure higher standards of collateral and maintain necessary liquidity.

Tether's reserves remain extremely liquid, with most being invested in cash, cash equivalents and other short-term deposits (about 85%). Gold and Bitcoin make up about 4% and 2% of Tether's total reserves, respectively. All new token issuances were invested in U.S. Treasury bills or placed in overnight repos.