Tether Holdings Limited’s third-quarter report for 2024 highlighted significant growth across several financial metrics, strengthening its position as a stablecoin industry leader. The report, verified by accounting firm BDO, showed that Tether’s net profit reached $7.7 billion over the first nine months of 2024, setting a new benchmark for the company.
In Q3 alone, Tether saw a net profit of $2.5 billion, boosting its total assets to $134.4 billion and its equity to $14.2 billion, both record highs. This performance is indicative of Tether’s continued growth and its ability to sustain a high level of profitability in the stablecoin market.
Looking back to the first half of the year, the stablecoin issuer had an earning of $5.2 billion, leading to a market capitalization of around $120 billion for its stablecoin, USDT. The result showed Tether had control of approximately 71% of the market share for stablecoins.
From this recent report, Tether’s USD₮ stablecoin circulation also surged, reaching nearly $120 billion, a significant increase that reflects a 30% growth in 2024. This rising circulation underscores the increasing demand for Tether’s stablecoin offerings globally.
Tether has increased its holdings in U.S. Treasury bonds to $102.5 billion, making it one of the largest holders of U.S. government debt in the world, comparable to several major countries. Additionally, Tether has raised its extra reserve cushion to over $6 billion, showing its dedication to keeping a strong cash position.
The company also reported growth in its investments, which now total $7.7 billion and cover areas like renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education.
This broad investment strategy aligns with Tether’s goal of supporting innovative industries worldwide and its plan announced months ago to diversify into new sectors/industries.
Future of Tether
Under the leadership of CEO Paolo Ardoino, Tether is transforming its structure into four distinct segments to expand its business focus, including initiatives in Bitcoin mining and artificial intelligence. At the Lugano Plan B conference, Ardoino unveiled Tether’s AI-centric toolkit designed to prioritize privacy.
This innovative toolkit, named the Tether Local AI Kit, employs peer-to-peer technology to offer unparalleled adaptability and ensure privacy across a spectrum of devices.
The kit’s goal is to make AI development accessible, ensuring smooth operation on devices ranging from budget-friendly $40 phones to high-end flagships, laptops, and robust mainframes. Furthermore, the company is venturing into the commodities trading sector to explore lending opportunities that provide flexible financial support to smaller enterprises.
Despite these advances, Tether faces investigations by U.S. federal prosecutors regarding possible money laundering and violating sanctions. While Tether refutes these claims, it has expressed its readiness to work with law enforcement to curb any misuse of its platform.
