Tether, the issuer of the USDT stablecoin, announced on July 31 that it achieved a record profit of $5.2 billion in the first half of 2024. This milestone sets Tether’s growing influence in the cryptocurrency market and its significant holdings in US Treasury bonds.
Tether’s portfolio of US Treasury securities now stands at approximately $97.6 billion.
This positions Tether among the top holders of US government bonds, surpassing the reserves of all but 17 of the world’s largest governments, including those of Germany, the United Arab Emirates, and Australia.
Tether also ranks third in the purchase of three-month US Treasurys, following only the United Kingdom and the Cayman Islands. The company anticipates potentially becoming the largest holder by next year.
The total market capitalization of USDT is around $114 billion, slightly less than Tether’s total reserves, which exceed $118 billion.
These figures are based on an independent attestation by the accounting firm BDO. Tether’s consolidated net equity, the total of all company assets minus liabilities, was reported at $11.9 billion as of June 30.
Paolo Ardoino, CEO of Tether, emphasized the company’s robust balance sheet, which allows it to lead the stablecoin industry in stability and liquidity.
Tether has been reinvesting a portion of its profits into diverse sectors such as sustainable energy, Bitcoin mining, AI infrastructure, peer-to-peer telecommunications, neurotech, and education.
Stablecoins like Tether’s USDT and its rival USD Coin (USDC) are experiencing rapid adoption, with payment volumes surpassing Visa and exceeding $4 trillion.
This growth in stablecoin usage is driving significant demand for US Treasurys. Research strategist Tom Wan predicts that the market for tokenized US Treasurys will reach $3 billion by the end of 2024.
