Tether Holdings Limited, the issuer of the USDT stablecoin, has reported a profit of $850 million in the second quarter of 2023 which brings its total excess reserves to $3.3 billion.

The company agreed to submit quarterly reports on its reserves for two years as part of a 2021 deal with the New York Attorney General’s office.

For the uninitiated, Stablecoins are a type of cryptocurrency which aim to keep a constant value and are usually backed by traditional assets such as dollars. Specifically, USDT is pegged to the United States dollar and mostly maintains parity with the $1 mark. 

According to Tether, there is $83.8 billion of $USDT in circulation, which makes it the largest stablecoin in the market and the third largest cryptocurrency overall, per data from Coinmarketcap.The report is tagged ‘Tether’s Second Quarter Consolidated Reserves Report” and is a certified financial statement by the accounting firm, BDO. The document which was released on Monday explains what the company owns and owes.Specifically, Tether disclosed a Q2 profit of $850 million, bringing its total excess reserves to $3.3 billion. Within April and June 2023, the company’s operational profits soared past the $1 billion mark, marking a 30% increase quarter over quarter. 

Additionally, the report showcases, for the first time, the company’s indirect exposure (via money market funds) to United States Treasury Bills as well as the Treasuries collateralizing the Overnight Repo, a form of short-term borrowing for dealers in government securities. By aggregating them together, the amount of Treasuries backing USDT is about $72.5 billion.

Also, the company disclosed a share buyback of $115 million and investments in energy-related initiatives, which do not comprise part of its stablecoin reserves. Furthermore, the report indicates that Tether’s consolidated total assets amount to at least $87 billion, while its consolidated total liabilities amount to $83 billion, of which $83 billion relates to digital tokens issued.