Tether Reports Record $13 Billion Profits in 2024 Amid Growing US Treasury Holdings
Tether, the issuer of the widely used USDT stablecoin, announced record-breaking profits of $13 billion in 2024, driven by strong demand for its dollar-pegged asset and strategic investments. The company now holds an unprecedented $113 billion in US Treasury securities, solidifying its position as one of the largest private holders of US government debt. Also read: Chinese Court Convicts BKEX Employees for Running Illegal Crypto Gambling Operation The latest financial disclosures reveal that USDT’s total market capitalization reached approximately $137 billion as of Dec. 31, slightly below Tether’s total reserves, which exceeded $143 billion. These figures were independently attested by accounting firm BDO, reinforcing the stablecoin’s claim of being backed 1:1 by liquid US dollar-denominated assets. Expanding Reserves and Strategic Investments Tether’s financial strength has positioned it among the world’s largest institutional investors. In July 2024, the company highlighted that its US Treasury holdings surpassed those of all but 17 national governments, including Germany, the UAE, and Australia. Beyond Treasuries, Tether’s reserve diversification includes gold and Bitcoin, with the latter contributing to $5 billion of its total profits in 2024. The company’s net equity—total assets minus liabilities—now stands at $20 billion. Over the course of the year, Tether issued $45 billion in new USDT, with $23 billion minted in Q4 alone. The stablecoin remains the most dominant in the industry, particularly on centralized exchanges, where it holds an 82% market share. Also read: Crypto Giant Gemini Blacklists MIT Grads as Gary Gensler Returns In addition to its financial expansion, Tether has been actively reinvesting profits into various industries, including sustainable energy, Bitcoin mining, artificial intelligence (AI) infrastructure, decentralized telecommunications, neurotechnology, and education. Regulatory Expansion and Market Shifts In 2024, Tether secured a stablecoin issuer and digital asset service provider license in El Salvador, which now serves as the company’s headquarters. This regulatory approval aligns with Tether’s broader strategy of expanding its influence beyond the traditional crypto landscape. Despite its financial strength, USDT’s market dominance has been slipping. According to CCData, its share of the stablecoin market fell to approximately 65% in 2024, as rival USDC gained traction. Circle’s USDC, with a market cap of around $52 billion as of Jan. 31, now dominates the Solana network, accounting for nearly 78% of its stablecoin supply. USDC’s recent gains have been partly attributed to questions surrounding Tether’s compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, which aims to bring greater oversight to the crypto sector. This uncertainty has led some institutional investors to shift toward Circle’s stablecoin. Also read: Illinois Moves Forward with Strategic Bitcoin Reserve Bill, Following Arizona’s Lead The Future of Tether and the Stablecoin Market As Tether continues to expand its Treasury holdings and diversify its investments, its role in the global financial system is becoming more pronounced. However, growing regulatory scrutiny and competition from USDC could shape the stablecoin landscape in 2025 and beyond. For now, Tether remains the dominant force in the industry, with record profits and a fortified reserve strategy that places it among the most influential entities in the crypto market. Whether it can maintain its lead amid regulatory challenges and emerging competition will be a key storyline in the year ahead.