• Tether generated a record $5.2 billion profit in the first half of 2024
• The stablecoin issuer benefited from the post-COVID inflationary economy and invested reserves in U.S. Treasuries
• Tether’s USDT stablecoin has a market capitalization of nearly $115 billion
Tether, the issuer of leading stablecoin USDT, has reported massive profits in the first half of 2024. The inflationary economy and rising interest rates have allowed the company to generate substantial yields on its reserves.
Tether’s Financial Performance
In its latest quarterly attestation, Tether announced a net profit of $5.2 billion for the first six months of 2024. This sets a new record for the company’s profitability.
Tether also earned $1.3 billion in net operating profit in Q2 2024. This was driven by returns on the company’s investments in U.S. Treasuries. The attestation was conducted by accounting firm BDO.
Tether’s Main Product – USDT
Tether’s main product is the stablecoin USDT, which has a market capitalization of nearly $115 billion. As a stablecoin pegged to the U.S. dollar, USDT has benefited from the inflationary economy and rising interest rates.
Tether’s Growing Profits
Tether has been consistently growing its profits each year since at least 2022. The company has been reinvesting its earnings into areas like decentralized AI, Bitcoin mining, and messaging apps.
Controversy Regarding USDT Reserves
Despite its growing profits, Tether has faced controversy regarding its reserves backing USDT. The company settled with the New York Attorney General in 2021 for making false claims about USDT’s reserves. Tether now publishes quarterly attestations to provide transparency.
Conclusion
Tether continues to generate record profits due to economic conditions and its large stablecoin issuance. However, questions linger regarding the company’s reserves and past lack of transparency. Tether aims to provide more clarity through regular attestations going forward.
