Tether Cuan Banyak, Dana Reserve USDT Meningkat

Stablecoin USDT Tether. (Photo; Doc. Remitano)

JAKARTA - Tether, the world's largest stablecoin publisher, has recorded huge profits this quarter, most of which are used to strengthen its stablecoin reserves.

Through its financial report on June 30, Tether revealed that it has more than USD 3.3 billion (IDR 49.8 trillion) of excess reserves to support its stablecoinUSDT.

This excess reserve comes from profits generated from existing reserves. Although these benefits were not shared with shareholders, Tether made it insurance to support the stability of USDT tokens that always maintain parity with US dollars.

"We disclosed direct and indirect exposure to the US Treasury and Treasury bills that guarantee Repo Overnight," said Tether. "By combining them, the total Treasury that supports Tether's stablecoin is about US$72.5 billion (around Rp1 quadrillion)."

Tether recorded a net profit of USD 1.5 billion (IDR 22 trillion) in the first quarter, followed by more than USD 1 billion (IDR 15.1 trillion) in the second quarter, of which USD 115 million (IDR 1.7 trillion) was used for share repurchase, and the rest to strengthen the company's reserves.

With total consolidated assets reaching 86.5 billion US dollars (Rp1.3 quadrillion) by the end of June, Tether managed to record a surplus of nearly 4%. This ruled out previous criticisms that suggested that the company's reserves were nearly bankrupt.

Tether's CTO, Paolo Ardoino, explains that reliable reserves act as a "balancer" of recent banks' failures caused by fractional reserve lending and duration mismatch.

It is important to note that in the first quarter, Tether revealed that 2% of its reserves were stored in Bitcoin (BTC), changing the previous trend where stablecoin publishers relied solely on US government debt. However, the latest report did not provide up-to-date information about the company's Bitcoin allocation.

However, Tether's CTO, Paolo Ardoino, clarified that a small part of Tether's profits are invested in the Bitcoin mining industry. With strong company reserves and transparent financial reports, Tether continues to show its commitment as the world's largest stablecoin issuer.