Cryptocurrency agency Tether, which points the stablecoin USDT (USDT), expects to make a $700 million revenue within the first quarter of 2023, matching the income of the final quarter of 2022, Tether chief expertise officer Paolo Ardoino instructed Cointelegraph at Paris Blockchain Week 2023.
“I don’t have the ultimate figures but, however the revenue of this quarter will most likely match the final quarter of 2022,” Ardoino stated, including that in This fall 2022, Tether generated $700 million of income. He added that Tether additionally has an “addition to that $950 million” at Dec. 31, 2022, noting:
“So it signifies that our firm fairness will develop to $1.5 billion or $1.7 billion which are on high of the reserves that we have now which are backing 100% of the belongings.”
Tether CTO went on to say that USDT is turning into extra the “most secure asset to carry on the earth” as a result of the corporate is totally different from the banks which are primarily based on the fractional reserve mannequin. He particularly referred to the continuing disaster in the USA banking system, with banks like Silicon Valley Financial institution (SVB) collapsing as a consequence of its fractional reserve mannequin.
Ardoino additionally talked about that he had been a fan of the key cryptocurrency Bitcoin (BTC), which is Tether’s hedge, stating:
“I like Bitcoin and that is our hedge and that is why we’re in Bitcoin, as a result of we do not belief these guys that they took a lot threat on buyer deposits.”
AS beforehand reported, Tether was aggressively slicing its industrial paper backing final yr, ultimately decreasing it to zero by late 2022. Along with eradicating industrial paper from its reserves, Tether was changing these investments with U.S. Treasury Payments.
The information comes amid Tether persevering with to extend its market dominance, with USDT’s market capitalization including about $8 billion since Feb. 28. On the time of writing, USDT market worth stands at $79 billion, which is the very best stage since Might 2022, in response to knowledge from CoinGecko.
Whereas USDT market dominance has been on the rise, Circle’s rival stablecoin USDC has been shedding its market share, with market cap dropping 18% since late February.
Associated: Tether CTO on USDC depeg: ‘Bitcoin maxis had been proper all alongside’ | PBW 2023
Circle has confronted main points as a consequence of its publicity to the collapse of SVB, with the USDC stablecoin briefly shedding its 1:1 peg with the U.S. greenback. The stablecoin subsequently re-pegged amid Circle asserting Cross River as a brand new banking accomplice and increasing ties with BNY Mellon.
Journal: Unstablecoins: Depegging, financial institution runs and different dangers loom
