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Tether Reaches Record Highs: $1.6 Billion in Excess Reserves

• Tether (USDT), the world’s leading stablecoin, has announced that it expects to have an estimated $1.6 billion in excess reserves during the March quarter.
• The company is expecting to make a profit of $700 million within this period, pushing its reserves higher and providing extra support for its USDT capitalization.
• Tether makes money through withdrawal fees, investments in digital tokens, precious materials, and issuing loans to institutions.

Tether Reaches Record High Excess Reserves

The number one stablecoin by market cap has announced it will reach $1.6 billion in excess reserves of Tether (USDT). The firm estimates this figure for the March quarter. Tether Chief Technology officer Paolo Ardoino disclosed that it expects an estimated $700 million in profit within the said period pushing the reserves higher. Ardoino further revealed that this money would remain in Tether to support USDT capitalization.

Tether Expects To Make More Profit This Quarter

In a CNBC report, the Tether CTO revealed that the firm made $700 million in December 2022 quarter. According to the report, Tether’s assets exceeded its liabilities during the quarter. Notably, after subtracting the liabilities from its assets, the company had $960.6 million left.

How Does Tether Make Money?

Users pay a $1,000 withdrawal fee; the minimum amount a user can withdraw is $100,000. Secondly, Tether reportedly makes money by investing in precious materials and digital tokens. It also issues loans to many institutions, thereby earning interest.

Silicon Valley Bank Crash Boosts USDT Usage

The challenges USDC faced when Silicon Valley Bank (SVB) crashed also pushed up USDT usage. Recall that Circle announced it had $3.3 billion of its USDC reserve stuck in SVB which caused panic and selling frenzy among investors as USDC de-pegged from USD .Many USDC holders moved their coins to USDT even below market value . In Arduino’s words ,the stablecoin is making money while traditional banks are falling .


Tether (USDT) has announced it will reach an estimated reserve of $$1·6 billion during this March quarter with expected profits of $$700 million along with other sources such as withdrawal fees , investing in digital tokens ,precious materials & issuing loans thus earning interests .This could potentially be beneficial for users who are looking for safer alternatives compared to traditional banks .