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HomeNewsTether Posts $13B Profit in 2024, Bolsters Reserves with $113B U.S. Treasury...

Tether Posts $13B Profit in 2024, Bolsters Reserves with $113B U.S. Treasury Backing

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  • Tether’s 2024 net profit hit $13B, group equity surpassed $20B, and reserves buffer reached a record $7B.  
  • USD₮ issuance grew $45B in 2024, backed by $113B U.S. Treasury holdings reinforcing stablecoin dominance.

Tether Holdings Limited reported a net profit of $13 billion for 2024, with total equity exceeding $20 billion. The stablecoin issuer’s reserve buffer reached $7 billion, its highest since inception, as confirmed by auditor BDO. 

Total assets rose to $157.6 billion against liabilities of $137.6 billion, reflecting a liquidity-first approach. These gains follow strategic allocations to Bitcoin mining, AI infrastructure, and renewable energy projects.  

The company now holds $113 billion in U.S. Treasury bonds, ranking among the top global holders of U.S. sovereign debt. This positions USD₮, Tether’s dollar-pegged stablecoin, as one of the most collateralized digital assets. 

USDT_1M_graph_coinmarketcap
Source: Coinmarketcap

USD₮ circulation expanded by $45 billion in 2024, including $23 billion in Q4 alone, cementing its 68% market share. Demand surged as traders sought stability during crypto volatility, with Tether generating $87.2 million in weekly fees from transactions.  

Regulatory compliance efforts included securing a Digital Asset Service Provider license in El Salvador, where Tether relocated its headquarters.

Concurrently, Tether integrated USD₮ with Bitcoin’s Lightning Network, enabling sub-cent transaction fees and near-instant settlements. This technical upgrade leverages Bitcoin’s base-layer security while bypassing its historical throughput constraints.  

Tether’s reserve composition remains dominated by cash equivalents (85%), primarily U.S. Treasuries, with 4% allocated to Bitcoin. The firm plans to allocate 15% of quarterly profits to BTC purchases, reinforcing its treasury diversification strategy.

Critics highlight concentration risks in U.S. debt exposure, but Tether asserts its reserves exceed redemption demands by $7 billion.  

The Lightning Network integration allows users to transact USD₮ via Bitcoin’s layer-2 channels without intermediaries, as reported by ETHNews. Merchants in El Salvador already pilot USD₮ payments for goods, sidestepping traditional banking rails. Developers note this could reduce reliance on Ethereum-based stablecoins for micropayments, though adoption requires wallet upgrades.  

ETHNews market analysts attribute Tether’s profitability to interest income from Treasuries, which yielded ~4.5% annually. USD₮’s growth correlates with declining stablecoin competition, as Circle’s USDC circulation plateaued at $28 billion. 

Tether’s dominance now extends beyond crypto trading into remittance corridors, with $1.2 billion daily volume across emerging markets.  

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Isai Alexei
Isai Alexei
As a content creator, Isai Alexei holds a degree in Marketing, providing a solid foundation for the exploration of technology and finance. Isai's journey into the crypto space began during academic years, where the transformative potential of blockchain technology was initially grasped. Intrigued, Isai delved deeper, ultimately making the inaugural cryptocurrency investment in Bitcoin. Witnessing the evolution of the crypto landscape has been both exciting and educational. Ethereum, with its smart contract capabilities, stands out as Isai's favorite, reflecting a genuine enthusiasm for cutting-edge web3 technologies. Business Email: [email protected] Phone: +49 160 92211628
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