As 2024 draws to a close, Tether, the American giant behind USDT, confirms its position as the undisputed leader in the stablecoin ecosystem. With record profits estimated at $10 billion, the company continues to expand its tentacles far beyond just the cryptocurrency sector.
Relentless Tether records unbeatable profits
According to information from Bloomberg, the American giant Tether would forecast 10 billion dollars in profit for this year 2024 alone.
Tether issues USDT, the most capitalized stablecoin on the market, by far. USDT is around $140 billion in market capitalization at the time of writing, far ahead of its main competitor, Circle's USDC, which is worth around $90 billion less.
According to one of his recent press releases, Tether claims 350 million customers worldwide.
💵 Discover our presentation of Tether and its essential USDT
Evolution of stablecoin dominance, with Tether's USDT in green and Circle's USDC in blue
Taking advantage of the bull run and the explosion in the price of Bitcoin, the capitalization of USDT has climbed by $50 billion this year.
Tether's flagship product has a capitalization of around $140 billion, is used by 350 million people, and yet, The cryptocurrency giant employs just over 100 employees, making it by far one of the most profitable companies in the world.
The profits generated by Tether come mainly from its US Treasury bonds, which currently represent 67.38% of its reserves. The company managed by Paolo Ardoino also benefited from the rise in the price of gold, which rose by more than 27% over the year. The precious metal is now worth 3.95% of its reserves.
Finally, the rise in the price of BTC also directly benefited it, since she holds the equivalent of 7.3 billion dollars from the queen of cryptocurrencies.
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USDT issuer continues to diversify its investments
Due to its low operational costs, Tether has a colossal cash flow. The company is increasing its investments, putting its hand into the portfolio to expand even in the agricultural or biotechnology sector.
It's well known that it's best not to put all your eggs in one basket. This is why Tether's tentacles now extend beyond just the cryptocurrency sector. And besides, the firm doesn't really have a choice, since the Fed's rate cuts directly impact its revenues from Treasury bills.
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Howard Lutnick, appointed by Donald Trump to serve as Commerce Secretary, is the head of Cantor Fitzgerald, a company that invested in Tether and ensures custody of the stablecoin issuer's reserves.
We mentioned it in our columns earlier, Howard Lutnick would discuss the deepening of financial relations between the two entities and would consider the establishment of a loan program based on Bitcoin. Tether also revealed “Hadron” last month, its platform dedicated to tokenizing stocks and bonds.
According to Paolo Ardoino, the company is expected to continue exploring investment opportunities next yearespecially with the very likely regulatory relaxation to come in the blockchain and crypto sector.
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Sources: Bloomberg, Glassnode
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