Tether, the firm behind USDT stablecoin, is rolling in dough. They've just posted a whopping $5.2 billion profit for the first half of 2024. That's not all. Their U.S. Treasury reserve is now massive.
The company dropped this bombshell on July 31. Tether's Treasury portfolio has ballooned to $97.6 billion. This growth mirrors the surge in Tether stablecoins. These are backed 1:1 with liquid U.S. dollar assets.
BDO, an independent accounting firm, checked the numbers. They seem legit. The total market cap of USDT is around $114 billion, according to Binance. Tether's total reserves exceed $118 billion.
Tether's not messing around. Their Treasury reserve is now bigger than all but 17 governments worldwide. That includes heavyweights like Germany, UAE, and Australia. They're also third in buying 3-month U.S. Treasurys.
The UK and Cayman Islands are still ahead. But Tether's gunning for the top spot. "Given the trajectory of USDT adoption, [Tether] sees the potential of becoming 1st in the next year," they said.
The company's net equity hit $11.9 billion by June 30. That's all assets minus liabilities. Tether issued about $8.3 billion in Q2 alone. USDT keeps getting issued and redeemed.
Paolo Ardoino, Tether's CEO, is pumped. He says their balance sheet lets them "continue leading the stablecoin industry in stability and liquidity." They're also branching out into AI, Biotech, and Telecommunications.
Tether's not putting all its eggs in one basket. They're reinvesting profits in sustainable energy, Bitcoin mining, data, AI infrastructure, and more. They're even dabbling in neurotech and education.
Stablecoins are taking off. Tether and its rival U.S. Dollar Coin are seeing rapid adoption. It's mostly due to demand for faster, safer cross-border payments. Research firm Sacra reckons stablecoins could outpace Visa, hitting $4 trillion in payment volume.
Crypto's becoming a big player in the U.S. Treasury market. Along with tokenized real-world assets, it's driving demand. Tom Wan, a research strategist, thinks the tokenized U.S. Treasury market will hit $3 billion by end-2024. Looks like Tether's riding the wave.