The issuer of the Tether (USDT) stablecoin says its excess reserves have increased by hundreds of millions of dollars in the second quarter of 2023.
Tether Holdings says that its total excess reserves increased by approximately 35% to $3.3 billion in the second quarter.
“In a continuation of Tether’s public commitment towards openness, it also reveals an increase in its excess reserves of about $850 million, bringing its total excess reserves to approximately $3.3 billion at the end of Q2, reinforcing the stability of Tether.”
According to Tether Holdings, excess reserves are derived from the “company’s own profits – not distributed to shareholders and which the company has decided to keep on top of the 100% reserves that Tether maintains to back all the outstanding tokens.”
The issuer of the world’s largest stablecoin by market cap says that it generated operating profits of over $1 billion during the second quarter, an increase of 30% from the first quarter.
Tether Holdings’ rise in excess reserves coincides with the USDT stablecoin’s market cap hitting a new all-time high.
The USDT market cap is approaching the $84 billion mark, an increase of 27% year-to-date. At under $26.5 billion, the market cap of the second-largest stablecoin by market cap USD Coin (USDC), is currently less than a third of USDT’s. The third-largest stablecoin by market cap, Dai (DAI), boasts a market cap of around $4.15 billion.
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