Tether, which is the largest stablecoin in the world, announced a profit of over 13 billion dollars for 2024, marking an important milestone for this crypto company.
Tether’s profit for 2023, which was $6.2 billion at the time, has more than doubled in just one year.
To put things in perspective, the profitability of this upstart cryptocurrency company is within striking distance from some of Wall Street’s most prestigious companies. Goldman Sachs released its 2024 profits earlier this month. 14:28 Billion—within 10% of the earnings posted by Tether this morning.
Tether Hits $13 Billion Profits for 2024 And All-Time Highs in U.S. Treasury Holdings, USD₮ Circulation, and Reserve Buffer in Q4 2024 Attestation
Read more: https://t.co/1CRfIK5XR0— Tether (@Tether_to) January 31, 2025
As stablecoins have come to prominence in the global economy—as an increasingly crucial link between traditional finance and the booming crypto market—Tether has reaped the greatest rewards. Its dollar-backed, stablecoin has been a huge success. DollarsIt is the market leader in its class, and has a capitalization of more than $139 Billion.
Tether’s success shows that stablecoins are a profitable business at any scale. To keep USDT steady at its dollar peg, the company holds tens of billions of dollars worth of fiat collateral—primarily in the form of U.S. Treasuries, which typically reap a few percentage points of interest annually.
The size of Tether’s operation clearly shows the interest that can accumulate. The company announced on Friday that it would have over $143 billion in fiat assets as reserves by the year 2024 to pay for the approximately $137 billion in tokens that it will be circulating at that time.
“Tether’s Q4 2024 attestation reinforces our position as a global leader in financial transparency, liquidity, and innovation,” The CEO of the firm, Paolo Ardoino made a public statement. “Tether continues to set the gold standard for stability and trust in the digital assets space.”
Ardoino, a Bitcoin company in El Salvador announced live on stage on Thursday that USDT would soon be available as part of Bitcoin’s base-layer. LightningThe Bitcoin Scaling Network. The integration—a major milestone joining two of the most dominant forces in crypto—is likely to only further boost Tether’s centrality to global finance.
As the company grew, so did scrutiny. USDT’s popularity is not limited to retail or institutional customers. Criminal Organizations as well—a detail that has not gone unnoticed by American lawmakers.
Howard Lutnick was nominated by President Donald Trump for the Commerce Department earlier this week. Face questions During his confirmation hearing, he was asked about the lack of oversight by government over Tether fiat reserves.
Lutnick’s Wall Street firm, Cantor Fitzgerald, says it custodies billions of dollars worth of U.S. Treasuries for the crypto company—but no external auditor has yet verified that claim, or those assets, themselves.
Andrew Hayward edited the book