Stablecoin Issuer Tether Reports $2.5 Billion Net Profits in Q3 2024
Tether, the issuer of the widely-used stablecoin USDT, has reported a significant increase in net profits for the third quarter of this year. According to the company’s latest attestation, released on October 31, Tether recorded $2.5 billion in group-wide net profits during Q3 2024. This impressive figure brings the year-to-date profit total to an astonishing $7.7 billion.
As one of the largest and most influential players in the digital asset ecosystem, Tether’s financial performance is closely watched by industry observers and investors alike. The company’s flagship cryptocurrency, USDT, has experienced significant growth in market capitalization, nearing $120 billion as of September 30. This remarkable achievement underscores the growing importance of stablecoins like USDT in the world of cryptocurrencies.
The breakdown of Tether’s net profits for Q3 2024 reveals a substantial contribution from yield on U.S. Treasury holdings, which accounted for approximately $1.3 billion of the total profit. Additionally, the unrealized appreciation of the company’s gold holdings in its reserve was another significant factor, contributing around $1.1 billion to the overall net profits.
Tether’s CEO, Paolo Ardoino, took to social media to share the news and provide further insight into the company’s financial performance. In an X post, Ardoino explained that the price of gold increased by about 15% during the third quarter, resulting in a substantial appreciation of Tether’s gold holdings.
The attestation for Q3/2024 was signed by accounting firm BDO Italy and provides a detailed breakdown of the company’s financials as of September 30. According to the document, Tether International Limited and Tether Limited disclosed $125.5 billion of assets in reserve against $119.4 billion in liabilities. This represents an excess reserve backing of over $6 billion, demonstrating the company’s commitment to maintaining a robust reserve structure.
A closer examination of the attestation reveals that approximately $105 billion of the reserve assets were held in cash and cash equivalents, including a substantial $84.5 billion in U.S. Treasury bills (T-bills). The company’s direct and indirect exposure to T-bills surpassed $102 billion, highlighting its significant involvement in the U.S. debt market.
In addition to its extensive holdings of U.S. Treasury bills, Tether also held notable reserves of gold ($5 billion) and bitcoin (BTC) ($4.8 billion) among other assets. The company’s investment arm, Tether Investments, reported a net equity value of $7.7 billion as of Q3 2024, up from $6.2 billion in the previous quarter.
Furthermore, Tether Investments disclosed owning a substantial 7,100 bitcoin (BTC) worth nearly $500 million. This significant holding underscores the company’s growing interest in digital assets beyond its flagship stablecoin USDT.
As one of the largest cryptocurrencies by market capitalization, USDT plays a crucial role in the digital asset ecosystem. It serves as a primary form of liquidity on exchanges and is increasingly being used as a payment method in emerging markets.
Wall Street Journal Report Alleges Tether Under U.S. Criminal Investigation
In related news, a recent report by The Wall Street Journal alleged that Tether is under investigation by the United States for possible violations of sanctions and anti-money-laundering laws. However, Tether has denied these allegations, with CEO Paolo Ardoino stating in an interview with CoinDesk that the company respects U.S. sanctions and is dedicated to remaining a large buyer of U.S. debt.
This denial comes as no surprise given Tether’s established commitment to maintaining a strong relationship with regulatory bodies. As the company continues to navigate the complexities of the digital asset space, its dedication to compliance and transparency will undoubtedly remain a key focus area for investors and industry observers alike.
Conclusion
In conclusion, Tether’s latest attestation reveals a remarkable quarter for the stablecoin issuer, with net profits totaling $2.5 billion in Q3 2024. This impressive performance underscores the company’s continued growth and influence within the digital asset ecosystem. As the market capitalization of USDT approaches $120 billion, investors and industry observers will be closely watching Tether’s future developments to see how this leading stablecoin issuer continues to shape the world of cryptocurrencies.