• Tether, the number one stablecoin by market cap, has announced plans to reach $1.6 billion in excess reserves of USDT.
• The firm estimates this figure for the March quarter and expects an estimated $700 million in profit within that period.
• Tether’s assets exceeded liabilities during the December 2022 quarter, leaving it with a $960.6 million reserve.

Tether Reaches New Milestone

Tether (USDT), the world’s leading stablecoin by market capitalization, has announced its intent to reach $1.6 billion in excess reserves of its own cryptocurrency in the coming March quarter. This would mark a new milestone for the blockchain-based payment platform and means that more people may be turning towards crypto as a safe haven asset amidst banking instability.

Expected Profits for Quarter

The Chief Technology Officer of Tether, Paolo Ardoino, revealed that the firm is estimating an extra $700 million in profits within said period – pushing their reserves higher than ever before. Ardoino also noted that these funds will remain with Tether to support its USDT capitalization further still.

December Quarter Summary

In a CNBC report, Ardoino highlighted that during the December 2022 quarter alone Tether had made over $700 million in profits; this lead to their assets exceeding their liabilities which left them with around $960.6 million remaining after subtracting liabilities from assets – marking a new highpoint since inception.

Sources of Income

Tether reportedly makes money through various avenues including charging users a withdrawal fee of up to $1000, investing into precious metals and digital tokens as well as issuing loans out to various institutions which results in interest being earned back at maturity date. It is clear then why many USDC holders are turning towards USDT now; this is due to Circle announcing they had around $3.3 billion stuck within Silicon Valley Bank (SVB) resulting from their banking crisis – causing USDC de-pegging from the USD and panic selling amongst investors who wanted to save costs wherever possible.

Conclusion

It is clear then why Arduino is recommending USDT as an alternative safe haven asset over traditional banking systems which have been known to crash intermittently or remain unstable even at times when markets are bullish across all cryptocurrencies including Bitcoin and Ethereum etcetera – resulting in ever increasing demand for USDT and hence profits for Tether itself too!