Tether has excess reserves for the USDT stablecoin of $1.6 billion

This is significant information for the cryptocurrency corporation Tether, which claims to have extra reserves of around $1.6 billion to sustain its USDT stablecoin. Speaking of which, Paolo Ardoino, the chief technical officer at Tether, thinks that USDT is turning into the safest asset to hold globally during the current banking crisis. Details are given below. Tether cryptocurrency news relating to its reserves

The chief technical officer of cryptocurrency startup Tether told CNBC that the company expects to make a $700 million profit in the March quarter, bringing its total amount of surplus reserves to more than $1 billion. This is the first time that the most recent information has been made public.

The USDT stablecoin, which is tied 1:1 to the US dollar, is produced by Tether. The USDT is always redeemable one-to-one for US dollars because tangible assets like fiat money and US Treasury bonds back it.

In fact, traders frequently utilize stablecoins to enter and exit the market for various cryptocurrencies without converting their funds back into fiat currency. Stablecoin issuers have come under fire over the years for not being open enough about the kinds of assets they keep in reserve to support their digital currency.

According to Tether’s most recent report, which covered the December quarter, the company had more assets than liabilities. The Tether Company then declared a $700 million profit for the December quarter in February. After subtracting liabilities, the company’s total assets came to $960.6 million. Statements made by the CTO of Tether regarding recent bitcoin news

Tether’s chief technical officer, Paolo Ardoino, stated that the business anticipates an increase in surplus reserves of $700 million for the still-unfinished current quarter.

After the failure of SVB, Tether, and Circle were contrasted

As was previously mentioned, Tether actively curtailed its support for the commercial paper last year and will eventually eliminate it by the end of 2022. Tether replaced US Treasury bonds with commercial paper, which had been eliminated from its storage.

The announcement comes as Tether’s market domination grows; since February 28, USDT’s market valuation has grown by roughly $8 billion, according to CoinGecko.

According to CoinMarketCap, the total market value of USDT has increased dramatically this month, from $70.98 billion on March 1 to $78.14 billion on Thursday.

Nevertheless, due to its exposure to the SVB collapse, Circle, which publishes a competitor stablecoin called Dollar Coin, had significant complications. Due to a momentary loss of its 1:1 peg to the US dollar, the USDC stablecoin.

Once Circle introduced Cross River as its new banking partner and strengthened links with BNY Mellon, the stablecoin began to recover. However, USDC restored its peg after the US government intervened to protect depositors.