Tether Reports $2.4 Billion Q3 Profits on Treasuries and Gold Gains, Sees Global USDT Growth

Tether Holdings Limited (BVI), the issuer of the stablecoin $USDT, has announced strong Q3 2024 financial results, driven by a combination of investment gains and rising demand for its digital dollar. Tether CEO Paolo Ardoino shared details of the quarter on the social media platform X on October 31, emphasizing the company’s diverse revenue sources, expanding market cap, and growing adoption in emerging markets.

For the quarter ending 30 September 2024, Tether reported $2.4 billion in net profits. The primary drivers of these earnings were gains from its substantial holdings in U.S. Treasuries and gold, which accounted for a combined $2.4 billion. U.S. Treasuries alone contributed around $1.3 billion, while Tether’s gold holdings added approximately $1.1 billion to the profit line. These assets are a cornerstone of Tether’s liquidity and stability, with the company’s exposure to U.S. Treasuries totaling $102.5 billion, placing Tether as the 18th largest holder globally, ahead of countries like Germany, Australia, and the UAE.

Beyond its fully backed $USDT reserves, Tether maintains an additional $6 billion in excess reserves. This surplus further reinforces the company’s financial security and allows for resilience in meeting demand, which continues to grow worldwide.

Tether’s Q3 report highlights a 30% year-to-date increase in $USDT’s market cap, which now nearly matches the total market capitalization of Tether’s closest stablecoin competitor. This growth is attributed to rising demand for $USDT, particularly in developing regions where traditional banking options may be limited.

In addition to stablecoin reserves, Tether manages assets totaling $134.4 billion across its broader holdings. This portfolio includes $7.7 billion in equity within Tether Investments, a branch independent of Tether’s stablecoin reserves. Tether Investments also holds approximately 7,100 bitcoins, reflecting the company’s strategy to diversify assets beyond cash and treasury holdings, adding potential long-term value and risk management.

Tether Insights, the company’s research division, recently shared data showing rapid growth in on-chain wallets. To date, over 330 million on-chain wallets and accounts have received $USDT, a figure that does not include the millions of users who interact with $USDT exclusively through centralized exchanges. The number of new on-chain addresses receiving $USDT continues to accelerate, with over 35 million new $USDT wallets created each quarter.

Ardoino pointed out that the majority of $USDT usage is concentrated in emerging markets, where access to traditional financial services is often limited. He noted that while financial inclusion is frequently discussed as a goal, action toward it remains limited, with many efforts focused on “marketing stunts.”

According to Ardoino, $USDT now reaches over 400 million people worldwide, yet approximately 3 billion people globally still lack basic financial services. He sees Tether as a critical player in closing this gap, providing a digital financial option for those left out of conventional banking.

Tether’s Q3 2024 attestation report, conducted by the independent accounting firm BDO, confirms the company’s robust financial position and reserve accuracy as of 30 September 2024. The report shows a record $2.5 billion in net profit for Q3, bringing Tether’s nine-month profit to $7.7 billion, and group equity to $14.2 billion — both all-time highs. Tether’s total consolidated assets reached $134.4 billion, underscoring the stablecoin issuer’s growing financial strength.

The report highlights Tether’s substantial reserves, including $105 billion in cash and cash equivalents, with $102.5 billion in U.S. Treasuries, placing Tether among the top 18 holders globally if ranked as a country. Additionally, Tether’s reserve buffer has grown to over $6 billion, reflecting a strong liquidity stance designed to support $USDT’s stability.

Beyond its stablecoin reserves, Tether’s investment arm holds $7.7 billion in assets, focusing on sectors like renewable energy, Bitcoin mining, AI, and telecommunications.

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