The post Tether Announces $13 Billion in Net Profits for 2024 appeared on BitcoinEthereumNews.com.

Tether, the largest stablecoin issuer by market share, has reported an astounding $13 billion in net profits for 2024, with $6 billion generated in Q4 alone. This marks a significant milestone for the company, reflecting both its strong financial strategy and the growing demand for stablecoins in the cryptocurrency market. Tether’s performance, backed by record-breaking exposure to U.S. Treasurys and a rapidly expanding USDT supply, highlights its pivotal role in the industry. However, regulatory scrutiny and competition remain key challenges that could shape its future. This article explores the factors behind Tether’s financial success, its strategic direction, and potential risks moving forward. How Did Tether Achieve $13 Billion in Profits for 2024? Tether’s latest financial attestation reveals an impressive $13 billion in net profits for 2024, with $6 billion generated in Q4 alone. The report, reviewed by the independent accounting firm BDO, underscores the stablecoin issuer’s growing dominance in the crypto sector. A significant factor behind this profitability is the firm’s exposure to U.S. Treasurys, which reached a record high of $113 billion. As interest rates remained elevated, returns from Tether’s reserve assets contributed substantially to its bottom line. Additionally, the firm issued $23 billion in USDT in Q4, bringing the total issuance to $45 billion for the year. This expansion in circulating supply further cemented Tether’s position as the market leader in stablecoins. What Does Tether’s $7 Billion Reserve Buffer Mean for Stability? One of the most notable aspects of Tether’s financials is its excess reserve buffer, which has grown by 36% to surpass $7 billion. This increase signals a strengthened financial position and an improved capacity to absorb market shocks. A higher reserve buffer not only reassures investors but also bolsters confidence in USDT’s ability to maintain its peg to the U.S. dollar, a crucial aspect of stablecoin…

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Filed under: News - @ February 2, 2025 7:21 pm