Tether, the stablecoin issuer, reported a staggering $13 billion in profits for 2024, putting it in the same financial league as Goldman Sachs. Unlike many firms, Tether does not publish audited financial statements, which has raised eyebrows among regulators and industry experts. In the last quarter of 2024, Tether issued over $23 billion in its USDT cryptocurrency and holds more than $7 billion in excess reserves. Howard Lutnick, a key figure in the confirmation hearings for President Trump’s commerce secretary nominee, noted that the demand for USDT has surged to $143 billion. With retailers like Chipotle and Whole Foods now accepting stablecoins, the landscape of traditional finance is increasingly blending with the cryptocurrency world.
Stablecoin issuer Tether has reported an astonishing profit of $13 billion for 2024. This remarkable figure, highlighted by Bloomberg News, places Tether among financial giants like Goldman Sachs, which recorded a net income of $14.3 billion last year. Tether, known for its USDT token, claims to have issued over $23 billion in USDT in the last quarter of 2024 and possesses more than $7 billion in excess reserves.
However, Tether’s lack of audited financial statements has raised concerns among regulators and crypto analysts. Instead, the company provides quarterly updates through a third-party attestation by accounting firm BDO. This scrutiny comes at a time when the company gained attention during Howard Lutnick’s confirmation hearing as President Trump’s nominee for commerce secretary. Lutnick, who leads banking partner Cantor Fitzgerald, advocated for audits of stablecoins like USDT, and noted that their Market had surged to $143 billion, driven by rising demand.
The adoption of stablecoins is increasingly notable, with many retailers such as Overstock, Chipotle, and Whole Foods beginning to accept them. According to a recent Federal Reserve report, stablecoins may rival traditional payment methods like credit or debit cards, and some experts believe they could significantly impact the economy.
This growth is aligned with a broader trend where traditional financial firms are exploring blockchain technology. For example, Bank of America holds numerous blockchain-related patents, and major banks like HSBC and JPMorgan Chase are piloting stablecoin-centric banking solutions.
In summary, Tether’s impressive profits and the growing acceptance of stablecoins underline their potential as a bridge between traditional finance and the burgeoning world of cryptocurrency.
Tags: Stablecoin, Tether, Cryptocurrency, Digital Assets, Blockchain News
What is Tether’s profit in 2024?
Tether made about 13 billion dollars in profits in 2024. This is a significant increase compared to previous years.
How does Tether make its money?
Tether makes money mainly through trading and lending. They also earn interest on the assets they hold.
What does this profit mean for Tether users?
A higher profit can lead to increased stability for Tether users. It shows that the company is financially strong, which can build trust.
Is Tether safe to use?
Tether is generally considered safe, but like any investment, it comes with risks. Users should always do their own research before using it.
What impact does Tether’s profit have on the cryptocurrency Market?
Tether’s profits can affect the overall cryptocurrency Market by providing liquidity and stability. This can encourage more people to invest in cryptocurrencies.
