Tether Withdraws Billions from Banks Amidst Rising Financial Uncertainties in Q1 2023
In a swift and proactive move aimed at safeguarding its financial stability, Tether, the issuer of the renowned USDT stablecoin, has substantially lessened its ties with the banking sector. As a result, the company pulled out a staggering $4.8 billion from bank deposits in the initial quarter of 2023, which undoubtedly sent ripples across the financial landscape.
Bold Tether Initiatives in Uncertain Times On May 15, Tether disclosed that it has significantly reduced its exposure to banks. This announcement came amidst mounting concerns over the potential collapse of several major banks. However, it is worth noting that Tether did not divulge the names of the institutions in question.
Beginning 2023 with a robust $5.3 billion in bank deposits , Tether’s recent withdrawal left it with a comparatively modest $481 million. This calculated risk maneuver was partly a response to the alarming plight of rivals who had kept excess funds in bank deposits.
In a commendable move demonstrating financial resilience, Tether redirected the substantial sum of $4.8 billion towards U.S. Treasuries and overnight repos secured by Treasuries. The latest data reveals Tether now holds an impressive $7.5 billion in these overnight repos, evidencing a big pivot away from the traditional banking sector.