Tether reported significant profits in 2024, generating $13 billion amid increased stablecoin issuance and investments in U.S. Treasury Bills.
Tether's Profit Surge
According to a report by the independent accounting firm BDO Italia, Tether holds $94.5 billion in Treasury Bills, a record high. The company earned $7 billion from these holdings and an additional $5 billion in unrealized earnings from investments in Bitcoin and gold. Late last year, Tether increased its Bitcoin holdings to 84,000 BTC, valued at nearly $8 billion.
Market Impact
Tether operates USDT, the leading stablecoin with a market capitalization of $140 billion, making it a key player in crypto transactions. According to a U.S. Treasury study, over 80% of crypto transactions involve stablecoins like USDT.
Challenges in Europe and Future Plans
Despite its significance, USDT and its issuer face challenges in European markets due to regulatory changes. Tether has struggled to comply with the European Union’s Markets in Crypto Assets Regulation, leading to declining confidence among exchanges. Several platforms, including Coinbase, have delisted USDT for European users pending compliance changes. Tether also switched its operational base to El Salvador after obtaining a crypto license there and plans to establish a headquarters in the country.
Tether shows resilience and significant achievements in the global crypto market, despite regulatory challenges. The company's relocation to El Salvador opens new opportunities for future growth.
