Points
- Tether reports a record net profit of $5.2 billion for the first half of 2024.
- Yield-bearing investments and reserves drive Tether’s financial performance.
- The firm’s total market capitalization of USDT is nearly $115 billion.
- Tether invests profits in sectors like AI, Bitcoin mining, and telecommunications.
Leading stablecoin firm Tether announced a record net profit of $5.2 billion for the first half of 2024, according to its latest quarterly attestation released on July 31. The company also reached a net operating profit of $1.3 billion in the second quarter, driven largely by its yield-bearing investments and reserves. The attestation was conducted by BDO, a global independent accounting firm.
Tether issues the largest stablecoin, USDT, which boasts a market capitalization of nearly $115 billion. The firm has benefited from the post-COVID inflationary environment and subsequent raised interest rates aimed at cooling down an overheated economy. Tether’s Group continues to demonstrate its financial strengths thanks to a strong and persistent revenue base from traditional asset-class investments, primarily U.S. Treasuries.
Cointelegraph
Tether has been reinvesting its profits into various efforts, including decentralized AI, Bitcoin mining, and a peer-to-peer messaging platform called Keet. It has seen growing profits every year since at least 2022. USDT, a stablecoin said to be backed 1:1 by U.S. dollars or dollar equivalents, has drawn controversy due to the lack of an official audit of its reserves. In February 2021, the New York Attorney General ordered Tether to post quarterly attestations and pay an $18.5 million settlement for previously misrepresenting the stablecoin’s backing.
The ongoing quarterly attestations and the growing acceptance of USDT underscore Tether’s prominent role in the stablecoin market. Stablecoins like Tether and its competitor USD Coin （USDC） have seen rapid adoption, with total payments volume surpassing that of Visa and reaching over $4 trillion. Research strategist Tom Wan anticipates that the tokenized U.S. Treasury market will hit $3 billion by the end of 2024, driven by the increasing demand for tokenized real-world assets.
解説
- Tether’s record profits highlight its robust financial performance and the growing importance of stablecoins in the cryptocurrency ecosystem.
- The firm’s strategic reinvestments in sectors like AI and Bitcoin mining demonstrate its commitment to leveraging profits for innovation and diversification.
- The continuous growth of USDT’s market capitalization and its acceptance as a stable and reliable digital asset underscore Tether’s significant role in the market.
- Regulatory scrutiny and the need for transparency through quarterly attestations reflect the ongoing challenges and responsibilities faced by leading stablecoin issuers.
- The rapid adoption of stablecoins and the potential growth of the tokenized U.S. Treasury market indicate the evolving landscape of digital finance and the increasing integration of blockchain technology with traditional financial assets.