Tether Records Massive Profits and Expands US Treasury Holdings in 2024

Tether, the entity behind the widely used USDT stablecoin, announced an impressive profit of $5.2 billion for the first half of 2024. Alongside its profit surge, Tether has also significantly increased its reserves, now holding a record $97.6 billion in United States government bonds.

The substantial growth in Tether’s Treasury portfolio underscores the expanding usage of USDT stablecoins, which the company claims are fully backed by liquid, US dollar-denominated assets. These details were confirmed through an independent attestation by the accounting firm BDO.

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As of now, the total market capitalization of USDT is estimated at approximately $114 billion. According to Tether, its Treasury reserve now outstrips the holdings of major world economies such as Germany, the United Arab Emirates, and Australia, placing Tether as the third largest holder of three-month US Treasurys—trailing only behind the United Kingdom and the Cayman Islands.

Source: Tether

Tether’s CEO, Paolo Ardoino, expressed optimism about the future, stating, “Given the trajectory of USDT adoption, we see the potential of becoming the largest holder in the next year.” He also highlighted Tether’s continued leadership in providing stability and liquidity in the stablecoin market, and its ventures into diverse sectors such as Artificial Intelligence, Biotech, and Telecommunications.

Furthermore, the company disclosed its consolidated net equity—total assets minus liabilities—as $11.9 billion as of June 30, with about $8.3 billion issued in the second quarter of 2024 alone. Tether’s strategy includes reinvestment of profits into sustainable energy, Bitcoin mining, AI infrastructure, and educational ventures among others.

The report also touched on the broader financial landscape, noting that stablecoins like Tether and its competitor USD Coin are rapidly growing in popularity, with their total payment volume this year surpassing that of traditional financial giants like Visa and reaching over $4 trillion.