• Tether Holdings Ltd, the blockchain fintech firm in charge of the issuance of the world’s largest cryptocurrency USDT is set to rake in a profit of $700 million for the first quarter of this year.
• The total number of USDT in circulation topped $78 billion, up 18% in the year-to-date period.
• Despite being a stablecoin Tether can best be described as a very volatile reliable asset owing to the susceptibility of the token to respond to Fear, Uncertainty, and Doubt (FUD) in the industry.
Tether Expecting Profitability
Tether Holdings Ltd, the blockchain fintech firm in charge of the issuance of the world’s largest cryptocurrency USDT is expected to make $700 million in Q1 profits. According to an interview by Tether’s Chief Technical Officer Paolo Ardoino, this amount was almost at par with that from fourth quarter 2022. In addition, there has been an increase of 18% on total USDT reserve which now stands at $1.6 billion.
USDC & BUSD Woes Turn To Profit
The profitability experienced by Tether has come as a result of woes experienced by its two rivals USDC and BUSD. USDC lost its peg earlier this month when its issuing company Circle had deep exposure with Silicon Valley Bank (SVB). On top if that Paxos also suffered from a crackdown from SEC due to issues related to BUSD which it claimed was sold as an unregistered security resulting in NYDFS asking them to stop issuing digital currency.
Reserves Held By Cantor Fitzgerald & Bahamia Lenders
In addressing issues regarding reserves held by Tether holdings Ltd, CTO Paolo Ardoino said they currently keep hold short-dated US Treasury Bills held in trust by Cantor Fitzgerald and Bahamia lenders Deltec Bank & Trust Ltd., Capital Union Bank assist looking after its reserves according to him.
Volatile Reliable Asset
Despite being a stablecoin Tether can best be described as a very volatile reliable asset owing to FUD (Fear Uncertainty Doubt) present within the industry which makes it highly susceptible than other cryptocurrencies or tokens available .
SEC Scare
A warning has however been issued about potential investigations from SEC that could put into question legality and reliability of biggest stablecoin out there – USDT which could lead investors trading cautiously not wanting relive similar experiences with other stablecoins such as Terraform Labs‘ own UST coin .