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Tether, the issuer of the world’s largest stablecoin, USDT, is charting an ambitious course as it heads toward a record-breaking $10 billion profit in 2024. The company’s success comes amidst a booming cryptocurrency market, where Bitcoin’s rally and increased demand for stablecoins have propelled USDT’s market cap to a staggering $140 billion—an impressive 50% surge this year.

A significant driver of Tether’s revenue is its strategic investment of reserve funds backing USDT into high-yielding assets such as US Treasuries, gold, and other securities. This financial strategy has not only cemented its dominance in the $200 billion stablecoin market but also positioned Tether as a key player in the global financial ecosystem.

Bold Investments and AI Ambitions

CEO Paolo Ardoino revealed that Tether reinvested over half of its profits in 2023, including a $775 million stake in the video-sharing platform Rumble. This investment, comprising a $250 million cash infusion and support for Rumble’s share buyback program, led to a 50% surge in Rumble’s stock price after the U.S. market closed.

Looking ahead, Tether is preparing to disrupt another frontier: Artificial Intelligence (AI). Ardoino announced plans to launch Tether’s AI platform in Q1 2025, enabling users to interact with advanced AI technology via mobile devices. This pivot reflects Tether’s commitment to innovation and diversification, leveraging AI to extend its influence beyond the crypto sector.

Navigating Regulatory Landscapes

As Tether expands, it also faces regulatory challenges. The European Union’s MiCA regulations, set to take effect by the end of 2024, have prompted several local exchanges to delist USDT. However, Tether sees an opportunity in the Americas, where crypto adoption is accelerating under the anticipated pro-crypto policies of President-elect Donald Trump.

Notably, Trump’s Commerce Secretary nominee, Howard Lutnick, is the CEO of Cantor Fitzgerald—a firm managing Tether’s reserves. This political alignment could bolster Tether’s expansion in the U.S. market, especially with expectations for a more crypto-friendly regulatory environment.

Also Read: XRP Surpasses Tether to Become 3rd-Largest Crypto, RLUSD Launch Sparks 15% Surge and $5-$8 Target!

With a focus on innovation, strategic investments, and navigating shifting regulatory landscapes, Tether is poised for unprecedented growth. As it ventures into AI and strengthens its foothold in key markets, 2024 could mark a transformative year for the stablecoin giant.

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.