Tether, the issuer behind the world’s leading dollar-pegged stablecoin, USDt (USDT), announced record profits of $13 billion for 2024, accompanied by a significant expansion in its US Treasury portfolio. As of January 31, Tether’s US Treasury holdings reached approximately $113 billion, underlining the growing demand for USDT, which is backed 1:1 by liquid US dollar-denominated assets.
At the close of 2024, USDT’s market capitalization stood at around $137 billion, closely aligning with Tether’s total reserves of over $143 billion. These figures were confirmed through an independent attestation from BDO, a reputable accounting firm. Tether’s financial resilience is highlighted by its diversified asset holdings, including gold and Bitcoin, the latter contributing an additional $5 billion to its profits.
Tether’s dominance in the stablecoin market has faced challenges. Despite holding strong, its market share dropped to 65% in 2024 as competition, notably USD Coin (USDC), gained ground. As of January 31, USDC’s market capitalization was approximately $52 billion, with the stablecoin commanding nearly 78% of the stablecoin supply on the Solana network.
Tether has also expanded its global footprint, obtaining a digital asset service provider license in El Salvador, which now serves as its headquarters. In addition to stablecoins, Tether is reinvesting its profits into sectors such as sustainable energy, Bitcoin mining, AI infrastructure, and even neurotechnology, positioning itself as a multi-industry investor.
Despite the increase in competition, Tether continues to dominate centralized exchanges, holding 82% of the market share. The company’s consistent issuance and redemption of USDT, with $23 billion issued in Q4 2024 alone, reflects its crucial role in global cryptocurrency markets.
Also Read: Tether’s USDT to Integrate with Bitcoin Lightning Network, Expanding Payment Options
With a consolidated net equity of $20 billion and its growing portfolio, Tether remains a central player in the evolving cryptocurrency landscape, even as regulatory questions surrounding its compliance with European frameworks like MiCA continue to emerge.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.