Tether, the world's largest stablecoin issuer, has reported unprecedented quarterly profits of $2.5bn. The figure marks a significant milestone for the company. Its consolidated earnings for the year have reached $7.7bn.

The company's total assets climbed to $134.4bn in the third quarter, according to Thursday's report. USDT, Tether's flagship stablecoin, now circulates with a market value approaching $120bn.

The surge reflects growing demand in a strengthening cryptocurrency market.

Tether's cash and cash equivalent reserves have expanded to more than $105bn. US Treasury bills account for $102.5bn of this sum. This represents a 5 per cent increase from the previous quarter. The company maintains excess reserves exceeding $6bn.

The quarter saw substantial gains from the company's investment portfolio. Tether recorded $1.3bn in unrealized profits from Treasury holdings. Its gold assets generated an additional $1.1bn in unrealized gains.

"Current outlook for Q4/2024 is very positive," said Paolo Ardoino, Tether's chief executive. He highlighted the platform's reach on social media. "Our team at Tether Insights recently released a research thread demonstrating a total of 330 million on-chain wallets and accounts ever receiving $USDt."

The results emerge amid regulatory scrutiny. The Wall Street Journal recently reported an investigation by Manhattan federal prosecutors into potential platform misuse. Ardoino has denied knowledge of any federal probe.

Tether has allocated $7.7bn to various initiatives. These span renewable energy, Bitcoin mining, AI development, and educational ventures. The company is exploring lending services for international commodities traders.

The firm's market position faces new challenges. Ripple launched its RLUSD stablecoin in September. Upcoming EU regulations could affect Tether's European operations. The company maintains its dominant market position despite these developments