Tether posts $2.4 billion earnings amid legal scrutiny

Tether (CRYPTO:USDT) has reported third-quarter earnings of $2.4 billion, bolstered by its holdings in U.S. Treasury bonds and gold.

As of September 30, Tether’s assets include $102.5 billion in U.S. Treasury bonds, with earnings generated from both bond yields and a rise in gold prices.

Tether remains the 18th largest bondholder globally, surpassing holdings in countries like Germany, Australia, and the UAE.

According to Tether’s report, the company’s excess reserves exceed $6 billion, meaning it could meet redemption requests while retaining additional liquidity.

The report highlights that $1.3 billion of Tether’s earnings stemmed from Treasury bonds, while $1.1 billion resulted from increases in gold prices.

Tether’s significant asset reserves continue to reinforce the company’s stablecoin operations, ensuring adequate backing for Tether tokens.

Amid its financial reporting, Tether also responded to recent legal allegations, asserting that they have not been contacted by authorities concerning investigations.

The Wall Street Journal has reported that U.S. agencies may be scrutinizing Tether for alleged regulatory breaches, though Tether officials stated they are committed to ongoing cooperation with law enforcement.

A representative from Tether commented on the accusations, saying that past claims of misconduct had proven unsubstantiated.

The company also noted that such allegations have occasionally affected market stability, contributing to concerns over stablecoin security.

Despite ongoing scrutiny, Tether’s substantial reserves, primarily held in U.S. Treasury bonds, are seen as a safeguard against high redemption demands, helping to maintain the stablecoin’s peg.

At the time of reporting, the Tether price was $0.9992.