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Tether Reports $2.5 Billion Q3 Profit, Expands USDT Supply

source-logo  cryptodnes.bg 01 November 2024 03:30, UTC

Stablecoin issuer Tether reported $2.5 billion in profit for the third quarter, raising its cumulative profit for the year to $7.7 billion.

This marks significant growth from the $5.2 billion profit recorded in the first half of 2024. According to Tether’s latest attestation report, the surge aligns with increased demand for stablecoins as global economic conditions evolve.

One highlight of the report is Tether’s achievement of a new all-time high for USDT in circulation, reaching nearly $120 billion. This represents a 30% increase in issued USDT tokens so far in 2024, translating to an additional $27.8 billion. In context, this figure is almost equal to the market cap of Tether’s closest competitor, underscoring its dominant position in the stablecoin space.

Tether attributes this demand partly to the post-COVID inflation environment, where rising interest rates aim to curb economic overheating. Recently, the U.S. Treasury also acknowledged the ongoing growth of stablecoins, though it hinted at potential regulatory challenges.

The report outlines Tether’s robust financial strategy, with reserves now exceeding $105 billion in cash and cash equivalents. Notably, $102.5 billion of this amount is directly or indirectly linked to U.S. Treasury holdings, a strategic allocation that reinforces the backing of its USDT stablecoin.

Tether CEO Paolo Ardoino highlighted the importance of this reserve, noting that Tether’s reserve buffer has grown beyond $6 billion. He emphasized that by maintaining a substantial buffer and focusing on strategic investments, Tether aims to set a benchmark for financial stability in the evolving digital currency landscape.

Through these moves, Tether not only demonstrates a resilient balance sheet but also signals its commitment to long-term stability, even as it navigates a complex regulatory and economic landscape.

cryptodnes.bg