Tether’s $13B Profit Bombshell: How 2024 Became Their Year of Dominance
Tether didn't just break records—it shattered the entire profit narrative for stablecoins in 2024. Here's how the controversial giant turned volatility into a $13B jackpot.
The Money Printer That Actually Works
While traditional banks struggled with fractional reserves, Tether's opaque machinery churned out profits that'd make Wall Street blush. No IPO, no shareholders—just pure crypto-alchemy.
Stablecoin, Unstable Profits
That $13B figure wasn't luck. It was a masterclass in leveraging crypto's wildest years—proving once again that the real money isn't in trading assets, but in being the casino itself.
Finance's worst-kept secret? Tether now makes more per quarter than most exchanges do annually. Maybe the real 'stable' coin was the friends we made along the way—if by friends you mean borderline unregulated dollar proxies.
How Does Tether Generate Such Massive Profits?
The profit of Tether in 2024, reaching $13 billion across the year, stems primarily from its ability to leverage interest income from its vast reserve assets. In contrast to conventional crypto firms, which earn through trading commissions, Tether has based its revenue on the deployment of the client funds deposited into the system into the low-risk yield supply tools, mainly US Treasuries.
In Q1, Tether earned $4.52 billion, followed by $1.3 billion in Q2, showcasing its ability to capitalize on high global interest rates. By mid-2024, it had US government debt worth $97.6 billion, surpassing the Treasury holdings of many sovereign nations. This scale, together with the strategy that Tether uses in the management of its strategic reserve, makes it a financial juggernaut in the crypto environment.
What Are The Reserve Strategies of Tether in 2025?
The reserve portfolio of Tether as of March 2025 has become about $120 billion, with US Treasuries forming the backbone of its holdings. However, their approach is not limited to government bonds. Its diversified reserve strategy includes:
With $5.6 billion in excess reserves, it operates like a conservative asset manager, prioritizing stability while maximizing returns.
In addition to interest income, the profitability is also enhanced by several revenue channels, which expand its access to finances. These lesser-known engines work in favor of Tether in different ways:
This surge can be attributed to three key factors that created a perfect storm for stablecoin profitability. To begin with, the high interest rates of the US Federal Reserve in the year 2024 increased the yields of Tether on its treasury holdings, earning the company billions of dollars in passive revenue.
Second, the unprecedented size, as reflected in $118 billion of reserves as of mid-2024, compounded the consequences of any slight fluctuations in interest rates, which meant huge profits.
Last but not least, the operational flexibility enjoyed by Tether in the absence of regulation requirements that plague the traditional banks enabled it to skew its reserves and pursue yield effectively.
ConclusionTether’s remarkable $13 billion profit in 2024 underscores its unparalleled dominance in the stablecoin market. Having made use of high interest rates, a diversified approach to reserves, and various types of revenues such as fees and lending, Tether has transformed the stablecoin business model into a financial juggernaut.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. All content provided is for informational purposes only, and shall not be relied upon as financial/investment advice. Opinions shared, if any, are only shared for information and education purposes. Although the best efforts have been made to ensure all information is accurate and up to date, occasionally unintended errors or misprints may occur. We recommend you do your own research or consult an expert before making any investment decision. You may write to us at [email protected]
