Today, Tether Holdings Limited published its assurance opinion for Q1 of 2023 completed by BDO Italia, a top five-ranked global independent public accounting firm. The attestation re-affirms the accuracy of Tether’s Consolidated Reserves Report (CRR), which breaks down the assets held by the group as of March 31, 2023. The CRR provides for the first time, additional categories with the aim of increasing transparency into Tether’s reserves reporting. Physical gold, Overnight Repo, Corporate Bonds and Bitcoin ownership have been reported separately. It reveals an increase in Tether's excess of reserves reaching an all-time high of $2.44B up $1.48B for the first quarter of 2023. 

Another excellent quarter for Tether under several aspects: $1.48B of net profit strengthening Tether’s reserves and an increase in the token in circulation of 20% which is a clear indicator of the trust of Tether’s customers which allows Tether to be very optimistic for the future.

Tether closed the first quarter 2023 with $81.8B in consolidated total assets. The majority of its reserves are invested in US Treasury Bills. It has also been working to take steps to reduce its reliance on pure bank deposits as a source of liquidity and instead leverage the Repo market as an additional measure to ensure higher standards of protection for its users by maintaining the required liquidity.

Tether's reserves remain extremely liquid, with the majority of its investments being held in cash, cash equivalents, and other short-term deposits (approximately 85%). This latest report demonstrates its commitment to transparency and highlights a 25% reduction in secured loans from 8.7% to 6.5% of this asset class within the overall reserves and the highest percentage to date of assets allocated in US Treasury Bills. Gold and Bitcoin represent circa 4% and 2% of the total reserves, respectively. All new issuance of tokens have been invested in US Treasury bills or placed in overnight Repo.

The CRR also indicates, and BDO independent attestation confirms, that Tether’s consolidated assets once again exceed its consolidated liabilities.

The Management of the Company asserts the following as of 9 May 2023:

• The Group’s consolidated total assets amount to at least US$ 81,833,149,345

• The Group’s consolidated total liabilities amount to US$ 79,390,359,036 of which US$ 79,372,401,626 relates to digital tokens issued.

• The Group’s consolidated assets exceed its consolidated liabilities.

You can read the latest assurance opinion and the Consolidated Reserves Report here

"We are thrilled with the tremendous success Tether has achieved in Q1 2023, with our reserves’ surplus reaching an all time high of $2.44B,” said Paolo Ardoino, CTO of Tether. “Our net profits for the quarter were $1.48B, a testament to the strength and stability of our platform.  We continue to monitor the risk-adjusted return on all assets within our portfolio on an ongoing basis and expect to make further changes as the overall economic environment changes and the market cycle progresses as a part of our normal, ongoing risk management processes. Tether continues to evaluate the global economic environment and has taken necessary steps to ensure that its customers' funds are not exposed to high-risk scenarios. Looking ahead to Q2, we have an extremely positive outlook and remain committed to transparency, which is why we have introduced new categories in the reserves’ breakdown in our quarterly report to provide even greater transparency to our users." 

The world has never been short on geopolitical uncertainties and recent developments have taken the threat levels to unprecedented heights. As a result, investors have increasingly turned to safe-haven assets that can protect their investments from market turbulence.

Gold has long been considered the preferred safe-haven asset and investors often flock to the precious metal during times of market turmoil. This is because gold has a long-standing reputation as a hedge against inflation, currency devaluation and economic uncertainty. As such, the demand for gold tends to increase during periods of geopolitical uncertainty as investors seek to diversify their portfolios and reduce their portfolio volatility.

With geopolitical tensions rising globally, it's no surprise that investors are relying on  gold to shield themselves from any further turbulence.

What is even more telling is that institutional investors have also been buying gold at record levels.

Central Banks Are Buying Gold At Record Levels

Central banks have been traditionally viewed as the guardians of monetary stability and long-term value preservation. The fact that they continue to add gold to their reserves reflects their unwavering belief in the precious metal's ability to maintain its value over the long term. 

As we move forward, it's clear that gold will continue to play a pivotal role in central banks' diversification strategies, providing a stable foundation for their portfolios and ensuring long-term financial stability.

Central banks' interest in gold has been growing in strength in recent years, with 2022 seeing the highest level of gold purchases on record. In fact, the net gold buying by central banks has been in the positive territory for 13 consecutive years. 

This trend speaks volumes about the confidence that central banks have in gold as a reliable and long-term store of value.

In 2022, central banks significantly increased their gold holdings, with the total purchases more than doubling from the previous year. Again, gold's appeal to central banks lies in its time-tested role as a hedge against inflation, currency fluctuations, and global uncertainties.

And it’s not only central banks. 

Powerful Nations Are Also Buying Gold

The world's largest economies have long recognized the value of gold as a strategic asset and have been hoarding it for decades. For example, the United States holds the largest gold reserves in the world, with over 8,100 metric tons, accounting for approximately 78% of its foreign reserves. Similarly, Germany, Italy and France are among the world's top ten gold-holding nations (source: World Gold Council).

The Chinese government has also been actively adding gold to its reserves in recent years, with holdings increasing from 1,054 metric tons in 2015 to 1,948 metric tons in 2021.

Russia is another major player in the global gold market, adding 312 metric tons to its reserves in 2021, taking its total gold holdings to 2,299 metric tons, making it the fifth-largest gold-holding nation globally.

These large nations' ongoing efforts to increase their gold reserves is a testament to the enduring value of gold as a strategic asset. Gold has a long-standing reputation as a store of value, which is particularly attractive in times of economic uncertainty and geopolitical tensions. 

Gold's appeal to large nations is only set to increase in the coming years, with countries continuing to see the value of holding a physical asset that can serve as a reliable and long-term store of value.

To find out more, go to https://gold.tether.to/