• Tether has improved its financial situation drastically, with a $700 million Q4 net profit and no longer any commercial paper backing.
• An attestation report from BDO Italia confirmed that Tether had $67 billion in consolidated assets and excess reserves of at least $960 million.
• Despite the improvements, suspicions remain as a full financial audit has not yet been conducted.
Tether Improves Finances
Tether has managed to improve its financial situation significantly in 2022, with a $700 million net profit reported in Q4. This allowed the company to get the commercial paper off of its books, meeting their target by the end of 2022. An attestation report provided by top-5 accounting firm BDO Italia confirmed this, stating that Tether had $67 billion in consolidated assets and excess reserves of at least $960 million.
FUD Counteracted
The success counters FUD (fear, uncertainty, doubt) which had been heaped upon Tether for some time now due to uncertainties about the US dollar-pegged token’s backing. The improved finances have alleviated these doubts and Paolo Arduino, CTO of Tether stated that they were proud of how they had continued to be a driving force in rebuilding trust within the crypto industry.
Full Financial Audit Still Needed
A third-party attestation is only really a snapshot at a particular time and does not equate to a full financial audit which would allow full access to Tether’s books. Until such an audit is conducted it is likely that suspicions will remain regarding the integrity of its finances.
Disclaimer
This article is provided for informational purposes only and is not intended or offered as legal, tax, investment or other advice.
Conclusion
Tether has seen remarkable improvements to its financial situation in 2022 which has allowed them to counteract FUD surrounding their US dollar-pegged token’s backing and rebuild trust within the crypto industry; however until an official financial audit is carried out there will still be lingering doubts about their actual finances.