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Tether Posts a Record $2.5 Billion Profit in Q3 as USDT Demand Soars 

2 mins
Updated by Mohammad Shahid
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In Brief

  • Tether's total assets rose to $134.4 billion in Q3, with $120 billion in circulating USDT, driving growth amid crypto demand.
  • The company holds $6 billion in excess reserves and $105 billion in cash equivalents, mostly in US Treasuries.
  • Tether plans further growth, eyeing loans for commodity traders and bracing for new competition from Ripple and EU laws.
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Tether has posted a record-breaking $2.5 billion in profits for the third quarter of 2024, boosting its consolidated earnings this year to $7.7 billion. 

According to a report released on Thursday, the stablecoin issuer’s total assets reached $134.4 billion in Q3. 

Tether is Dominating the Stablecoin Market by a Large Margin

The circulating value of Tether’s USDT token has grown close to $120 billion, reflecting increased demand amid a bullish crypto market. Tether currently holds more than $6 billion in excess reserves.

The company’s reserves in cash and cash equivalents have risen to over $105 billion, with $102.5 billion held in US Treasury bills—a 5% increase from last quarter. 

Read More: What Is a Stablecoin? A Beginner’s Guide

During Q3, the stablecoin issuer expanded its direct and indirect holdings in US Treasuries, earning interest income from these reserves. The firm reported an additional $1.3 billion in unrealized profits from Treasuries and $1.1 billion from its gold assets in the same period.

Beyond stablecoin reserves, the company has invested $7.7 billion in initiatives like renewable energy, Bitcoin mining, AI development, telecommunications, and educational ventures.

“Current outlook for Q4/2024 is very positive. Our team at Tether Insights recently released a research thread demonstrating a total of 330 million on-chain wallets and accounts ever receiving $USDt, not even counting the several tens of millions of users that hold and transact in $USDt only through centralised exchanges,” Tether’s CEO Paolo Ardoino wrote in an X (formerly Twitter) post

Earlier this month, reports from The Wall Street Journal indicated that the US Attorney’s Office in Manhattan is investigating Tether for potential misuse of its platform by third parties involved in illegal activities. 

The company’s CEO has denied any claims of a federal probe, asserting no indication of such an investigation.

Read More: A Guide to the Best Stablecoins in 2024

As part of its growth strategy, Tether is evaluating lending options for international commodities traders, with a particular focus on developing markets. With strong profits and established networks, the firm is positioning itself for potentially lucrative expansions.

Despite holding the top spot in the stablecoin market, Tether may face rising competition. Ripple recently launched its own stablecoin, RLUSD, in September, while new EU regulations for stablecoins could affect Tether’s dominance in the European market.

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Mohammad Shahid
Mohammad Shahid is an experienced crypto journalist with a specialization in blockchain security. He covers a wide range of topics spanning everything from Web3 to retail crypto. As an experienced freelance journalist, he has worked on campaigns for several tier-1 exchanges, such as Bitget, and startups, including RankFi and HAQQ. Mohammad comes from an extensive technical background, with a master’s degree in Cyber Security Analysis from Macquarie University, where he majored in...
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