Tether Reports $2.5B in Profits for Q3 2024

Tether, the USDT stablecoin issuer, announced on Thursday that it made $2.5 billion in profit during the third quarter. The figure brings Tether’s profit for the first nine months of 2024 to $7.7 billion, up from the $5.2 billion recorded in the year’s first half.

One of the key developments for Tether during the period was a record high for stablecoin circulation, with about $120 billion worth of USDT now in supply. According to the firm, this represents a 30% increase in issued USDT tokens for 2024, totaling around $27.8 billion, a figure nearing the market capitalization of Tether’s closest competitor.

Tether’s Reserve Grows

Tether’s announcement revealed that its reserves now include over $105 billion in cash and equivalents, with $102.5 billion invested in the U.S. Treasuries. This makes Tether the 18th largest holder of U.S. Treasuries worldwide, ahead of countries like Germany, Australia, and the UAE, and reflects a $5 billion increase since last quarter.

Paolo Ardoino, Tether’s CEO, commented on the company’s approach, saying:

“By increasing our reserve buffer to over $6 billion and focusing on strategic investments, Tether is once again setting the standard for stability in the financial space.”

Growing Demand for Stablecoins

Currently, Tether’s USDT operates across 17 blockchains, such as Ethereum, Tron, Solana, Avalanche, and TON. 

In August, the stablecoin was launched on the layer-1 Aptos blockchain, allowing Tether to tap into a network known for its low gas fees and high transaction speeds. The integration reduced user transaction costs and is expected to drive more engagements within the Aptos network, enhancing its ecosystem.

Demand for stablecoins has surged globally, partially due to inflationary pressures following the COVID-19 pandemic and rising interest rates aimed at cooling overheated economies. In countries such as Argentina and Brazil, USDT has become a preferred choice for individuals seeking protection against rapidly depreciating fiat currencies.

Additionally, stablecoins have drawn attention in the U.S. political landscape. Presidential candidate Donald Trump recently stated his intention to leverage dollar-backed currencies to reinforce the dollar’s role as a global reserve currency if elected.

In line with this, Trump’s affiliated crypto project, World Liberty Financial, is preparing to launch its stablecoin, highlighting the anticipated role of digital dollar-pegged currencies in his economic strategy.