Tether Posts Record $13B Profit in 2024 on Treasury Holdings Dominance

Tether's $13 billion profit in 2024 reflects its transformation into a shadow treasury giant. The stablecoin issuer now holds $97.6 billion in US government debt—surpassing many sovereign nations—as it captures yield from the Federal Reserve's restrictive monetary policy.

Quarterly earnings reveal the scale of this arbitrage: $4.52 billion in Q1 alone, followed by $1.3 billion in Q2. Unlike crypto exchanges reliant on volatile trading fees, Tether's model thrives on risk-free returns from collateral backing its USDT stablecoin.

The company's reserve strategy demonstrates how decentralized finance infrastructure increasingly mirrors traditional finance. By mid-2024, Tether had become a systemically important holder of short-term Treasuries, benefiting from both higher-for-longer rates and growing demand for dollar-pegged stablecoins.