The post Tether’s $2.5B Q3 Profit Driven by Soaring USDT Demand, Preps for Ripple Competition appeared on BitcoinEthereumNews.com.

Tether achieved a record $2.5 billion profit in Q3 2024 due to strong demand for USDT and U.S. Treasury yields. The company’s cash reserves are backed by over $105 billion, mostly in U.S. Treasury bills. Stablecoin issuer Tether has reported a record-breaking profit of $2.5 billion for Q3 2024, marking another robust quarter fueled by high demand for its USDT stablecoin and yields from its reserve-backed U.S. Treasury bonds. In its attestation report released on Oct. 31, Tether stated that the company has already generated $7.7 billion in profit for 2024, with equity reserves of $14.2 billion and assets of $134.4 billion. The USDT stablecoin of Tether has witnessed an almost 30% increase in circulation in 2024, with $120B worth of tokens in circulation following an extra $27.8B worth of tokens being issued this year. This growth indicates the rising use of Tether’s stablecoin as a stable and reliable means of communication in the crypto market. Currently, Tether has more than $105 billion in cash and cash equivalents, and the majority of that amount, $102.5 billion, comes from U.S. Treasury bills. The Tether’s Treasury holdings have risen by 5% since July, when the company disclosed that they had $97.6 billion in the portfolio. This puts Tether on the list of the first 18 official holders of US debt, leaving behind countries like Germany, Australia and UAE. Besides stablecoin demand, Tether has benefited from high returns on its Treasury securities to ensure it remains liquid. According to the company, it has increased its reserves by 15% within the last nine months and now stands at over $6 billion. The assets and liabilities of the total reserve are around $125 billion, while the liabilities arising from the token issuance are around $119 billion. Diversified Holdings Enhance Financial Stability Tether’s financial strategy is…

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Filed under: News - @ November 2, 2024 7:26 am