Tether Posts $13 Billion Profit in 2024, US Bond Holdings Hit ATH

Highlights:

• Tether’s net profits topped $13 billion last year, boosting its total equity to over $20 billion.
• The company’s US Treasury holdings reached a record $113 billion, strengthening its liquidity.
• Tether’s Bitcoin investments contributed to its growing asset portfolio and overall profits.

Tether, the issuer of the dollar-pegged USDT stablecoin, posted $13 billion in profits last year and now holds an even larger reserve of U.S. government bonds. Tether generated $7 billion in profits from its U.S. Treasury holdings and $5 billion in unrealized gains from its Bitcoin and gold investments. Other investments added $1 billion to the total.

According to the attestation, the firm’s U.S. Treasury portfolio was valued at approximately $113 billion as of December 31, while its reserves for issued tokens totaled $143 billion. These figures are based on an attestation from BDO, an independent accounting firm. Tether’s net equity, which is the total of its assets minus liabilities, is $20 billion.

In Q4 alone, Tether issued $23 billion in new USDT tokens, bringing its total issuance for the year to $45 billion. The report highlighted a market cap of $136 billion, far surpassing its closest competitor, Circle’s USDC, which has a $53 billion market cap—about one-third of Tether’s size.

However, CoinGecko data at press time shows Tether’s market cap has increased to $140 billion, suggesting the company issued an additional $4 billion in USDT in January alone. This positions the company as a major player in crypto transactions.

Tether just released the attestation for Q4 2024.

Highlights as of 31st December 2024:

– $13.7 billion profit for year 2024
– ~$6 billion profit for Q4 2024
– $113 billion in direct and indirect holdings
– $7 billion in Tether's excess stablecoin reserves (36% increase YoY),… https://t.co/izYONstKuF

— Paolo Ardoino 🤖🍐 (@paoloardoino) January 31, 2025

Tether Faces Regulatory Challenges in Europe Amid Rising Crypto Adoption

A U.S. Treasury study found that over 80% of crypto transactions involve a stablecoin like USDT. However, USDT and its issuer face hurdles in European markets due to regulatory changes. Tether has struggled to meet the European Union’s Markets in Crypto Assets Regulation, causing a drop in confidence among exchanges. 

Several platforms, including Coinbase, have temporarily removed USDT for European users while awaiting compliance updates. Last year, Tether acquired a stablecoin issuer and digital asset service provider license in El Salvador, which is now the company’s headquarters. 

JUST IN: 🇸🇻 Tether $USDT to relocate to El Salvador. pic.twitter.com/imzZaAiEin

— Watcher.Guru (@WatcherGuru) January 13, 2025

Tether Expands into New Industries

The USDT issuer is broadening its reach beyond stablecoins, with plans to venture into new industries in 2025. The company revealed upcoming projects in artificial intelligence, telecommunications, and financial services.

Tether recently announced its expansion into Bitcoin’s base layer and the Lightning Network, further strengthening its commitment to crypto infrastructure and market growth. Moreover, on Jan. 16, Tether partnered with LayerZero to launch USDT0, a multichain stablecoin ensuring interoperability without bridges.

Tether CEO Paolo Ardoino highlighted the company’s commitment to innovation, stating,

“Our goal is to offer practical solutions for remittances, payments, and other financial applications that demand both speed and reliability.”

This rapid growth highlights the rising demand for stablecoins and the robust market appetite for USDT as cryptocurrency adoption continues to grow. As stablecoins gain momentum, the sector’s total market capitalization is approaching $200 billion. Digital asset manager Bitwise forecasts this growth will accelerate in 2025, predicting the stablecoin market could reach $400 billion next year.