• Tether Holdings withdrew $4.5 billion from banks in Q1 2023, reducing counterparty risk and increasing market capitalization to $82 billion.
• The company diversified its remaining bank deposits among multiple financial institutions and allocated 85% of its reserves into cash, cash equivalents, and short-term deposits.
• Tether’s financial performance has surpassed notable companies like BlackRock, Netflix, Starbucks, Cash App, and PayPal in the quarter.

Tether Reduces Counterparty Risk & Increases Market Capitalization

In the first quarter of 2023, Tether Holdings withdrew a staggering $4.5 billion from banks to reduce counterparty risk and increase market capitalization to an impressive $82 billion. This strategic move was made to bolster the company’s financial stability and increase transparency for stakeholders by unveiling holdings of gold and Bitcoin in its latest attestation for the quarter.

Diversifying Bank Deposits & Allocating Reserves

To mitigate potential losses due to recent bank failures, Tether managed to diversify its remaining bank deposits among numerous financial institutions. In addition, the company allocated 85% of its reserves into cash equivalents, short-term deposits that could be promptly liquidated upon redemption requests. Moreover, United States Treasury bills were elevated to an all-time high of over $53 billion (representing 64% of reserves).

Outperforming Notable Companies

In a remarkable display of success during the quarter, Tether proudly highlighted that it had outperformed profits of major companies such as BlackRock, Netflix, Starbucks