Cryptocurrency agency Tether, which points the stablecoin USDT (USDT), expects to make a $700 million revenue within the first quarter of 2023, matching the earnings of the final quarter of 2022, Tether chief expertise officer Paolo Ardoino advised Cointelegraph at Paris Blockchain Week 2023.
“I don’t have the ultimate figures but, however the revenue of this quarter will in all probability match the final quarter of 2022,” Ardoino mentioned, including that in This fall 2022, Tether generated $700 million of earnings. 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 can be on prime of the reserves that we now have which can be backing 100% of the property.”
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 completely different from the banks which can be primarily based on the fractional reserve mannequin. He particularly referred to the continued disaster in the USA banking system, with banks like Silicon Valley Financial institution (SVB) collapsing due to its fractional reserve model.
Ardoino additionally talked about that he had been a fan of the most important cryptocurrency Bitcoin (BTC), which is Tether’s hedge, stating:
“I really 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 danger on buyer deposits.”
AS beforehand reported, Tether was aggressively reducing its business paper backing final 12 months, eventually reducing it to zero by late 2022. Along with eradicating business 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 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.
Circle has confronted main points because of its publicity to the collapse of SVB, with the USDC stablecoin briefly losing its 1:1 peg with the U.S. dollar. The stablecoin subsequently re-pegged amid Circle saying Cross River as a brand new banking accomplice and increasing ties with BNY Mellon.