What Is Tether? The Company Behind USDT | CoinMarketCap

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Tether (USDT) is the OG stablecoin that started it all. This report looks into how that happened: 🔹 Tether’s recent announcement that it is buying Bitcoin. 🔹 Tether’s company structure. 🔹 Tether’s reserves and revenues.

to mostly short-term duration US Treasury Bills. But questions still remain about the auditing process and some of Tether’s business practices. According to Tether itself, the company is highly profitable.Tether is making bank. According to its Consolidated Reserves Report, the company held $2.4 billion more assets than liabilities after Q1 2023. It turned aTether's main source of revenue is the fees it charges for issuing and redeeming its tokens.

Tether's other source of revenue is the interest income it earns from lending its reserves to third parties. Tether lends some of its reserves to other entities, such as exchanges, traders, or institutions, in exchange for interest payments and collateral. These loans are secured by assets that are worth more than the loan amount, and they are subject to margin calls if the value of the collateral drops below a certain level.

Tether's third source of revenue is the gains it makes from investing its reserves in various assets. Tether invests some of its reserves in different types of assets, such as corporate bonds, funds, precious metals, digital tokens, and other investments. These assets generate returns for Tether in the form of dividends, interest, capital appreciation, or price appreciation. Tether also buys and sells these assets depending on market conditions and its liquidity needs..

in fines and stop operating in New York. They also agreed to submit quarterly reports on their reserves for two years.

 

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