Tether made $5.2B in 2024: Here’s how stablecoins make money
2025-07-02 16:00:39
Main Idea
Tether generated $5.2 billion in profit in 2024 primarily through interest income from US Treasuries and other reserve assets, alongside transaction fees and fintech partnerships, despite facing regulatory scrutiny and risks.
Key Points
1. Tether's $5.2 billion profit in 2024 came mainly from interest income on US Treasuries, with $4.52 billion in Q1 and $1.3 billion in Q2.
2. Tether holds $97.6 billion in US government debt, making it one of the largest global holders of Treasuries.
3. Additional revenue streams include transaction and conversion fees, generating over $122 million weekly in early 2025, and collateralized loans backed by reserves.
4. High US Federal Reserve interest rates in 2024 significantly boosted Tether's yields on reserve assets, contributing to its massive profits.
5. Tether faces regulatory scrutiny over reserve transparency and AML compliance, with EU platforms delisting or restricting USDT due to non-compliance with MiCA rules.
6. Tether's profitability model contrasts with competitors like Circle (USDC), which shares interest income and adheres to stricter auditing and reserve requirements.
Description
With rising rates and over $100 billion in reserves, Tether turned monetary policy into profit, and it’s not alone.
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