The issuer of the world's largest stablecoin $USDT — Tether — reported a record net profit of around 10 billion dollars for the year. The achieved financial results confirm the effectiveness of the chosen strategy of active and aggressive business expansion, as well as the strengthening role of the company in the global financial system.
In recent years, Tether has significantly changed its profile and has effectively become one of the largest private holders of US government debt. A significant portion of the company’s reserves is placed in US Treasury bonds, allowing it to benefit from the prolonged period of high interest rates.
Financial results and issuance growth
The profit generated, as emphasized by the company's representatives, was formed solely through core operational activities and is not related to one-off factors. It coincided with a massive influx of liquidity into the crypto market. Over the year, the issuance of USDT increased by about 50 billion dollars, marking one of the largest increases in the entire history of the stablecoin.
As a result, the total amount of USDT in circulation exceeded 186 billion dollars. This is the second largest annual growth in issuance in more than a decade of Tether's operation, indicating a steadily growing demand for digital dollar instruments.
The CEO of the company Paolo Ardoino noted that such a significant increase in the capitalization of USDT is directly related to the global shift in demand for the US dollar beyond traditional banking infrastructure. According to him, the stablecoin is particularly actively used in regions with limited access to banking services or slowly functioning financial systems. In this context, USDT has effectively become the largest 'monetary social network' in history, uniting millions of users around the world.
In addition to its core business, Tether also manages a venture portfolio of about 20 billion dollars, investing in promising areas such as artificial intelligence and biotechnology. However, these high-risk investments did not have a noticeable impact on the company's current financial results. The key source of income remains interest income generated by placing reserves in an environment of persistently high rates.
