Tether reports record-breaking $5.2B profit in the first half of 2024

Tether stated that its US Treasury reserve is larger than all but 17 governments worldwide. According to a July 31 release, Tether, the manager of the dollar-pegged USDT $1.00 stablecoin, claimed record revenues of $5.2 billion in the first half of 2024, as well as a larger-than-ever hoard of US government bonds. 

Tether’s US Treasury portfolio is currently valued at around $97.6 billion, according to the business. The increase in the company’s Treasury holdings underscores the continued popularity of Tether USDT $1.00 stablecoins, which Tether claims are backed 1:1 by liquid US dollar-denominated assets. The data is based on an attestation from BDO, an independent accounting company.

According to Binance, the total market capitalization of USDT is around $114 billion, slightly less than Tether’s total reserves, surpassing $118 billion, Tether claimed.  Tether’s Treasury reserve is larger than that of all but 17 governments worldwide, including Germany, the United Arab Emirates, and Australia, according to the company. It also ranks third in three-month US Treasury purchases, trailing only the United Kingdom and the Cayman Islands. 

“Given the trajectory of USDt adoption, [Tether] sees the potential of becoming 1st in the next year,” according to the organization. The report also revealed that Tether’s consolidated net equity the sum of all business assets minus all liabilities was $11.9 billion as of June 30. Tether issued approximately $8.3 billion during the second quarter. 

Tether’s balance sheet allows the company to “continue leading the stablecoin industry in stability and liquidity, as well as to bring its expertise across different areas such as Artificial Intelligence, Biotech, and Telecommunications,” according to Paolo Ardoino, CEO of Tether.

Tether stated that it has been reinvesting some of its income in related areas such as renewable energy, Bitcoin mining, data, AI infrastructure, peer-to-peer telecommunications technology, neurotech, and education.

Stablecoins like Tether and rival USD Coin USDC $1.00 are gaining popularity, with total payment volume topping Visa and reaching over $4 trillion. Crypto, combined with tokenized real-world assets, is emerging as a major source of demand for US Treasury securities. 

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