Daniel Walker
Tether, the leading stablecoin issuer, reported a robust $2.5 billion profit for the third quarter, as outlined in its latest attestation report released Thursday. This brings Tether’s profit for the first nine months of the year to $7.7 billion, up from $5.2 billion recorded in the first half of 2024.
The company highlighted a significant milestone with USDT issuance, reaching an all-time high of nearly $120 billion in circulation. This growth represents a 30% increase year-to-date, adding $27.8 billion worth of USDT to the market—almost equaling the market cap of its closest competitor.
Demand for stablecoins has surged in 2024, largely driven by inflationary pressures and the Federal Reserve’s interest rate hikes aimed at cooling the economy. The U.S. Treasury projected further growth for stablecoins, while noting potential regulatory hurdles that could impact their expansion.
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Tether’s cash reserves exceed $100 billion
According to Tether’s attestation, its reserves are primarily held in cash and cash equivalents, totaling over $105 billion. Notably, $102.5 billion of these assets are in direct and indirect U.S. Treasury holdings, ensuring liquidity and security.
Tether CEO Paolo Ardoino emphasized the company’s commitment to financial stability, stating, “By enhancing our reserve buffer to more than $6 billion and focusing on strategic investments, Tether continues to set the benchmark for reliability in the financial sector.”
