Q4, 2024 was a big quarter for Tether as it reported record profits in excess of $13 billion.
In its recently released financial report for the quarter, compiled by BDO, Tether Holdings Limited reported a huge profit with USDT, its USD-pegged stablecoin, as the major source of returns
BDO is a global accounting firm providing financial audits, tax services, and business advice. It operates in numerous countries and ranks among the largest accounting networks worldwide.
Tether is a stablecoin issuer, best known for its USDT stablecoin. All of Tether’s products are profitable, with USDT being the most popular. Tether also offers EUR₮, pegged to the euro. The value of EUR₮ remains equal to one euro, making it ideal for transactions or holding value in euros instead of dollars.
Another product, CNH₮, is tied to the Chinese yuan, specifically the offshore yuan. This stablecoin is useful for engaging with Chinese currency in global markets.
Additionally, Tether offers XAU₮, a stablecoin backed by gold. Each XAU₮ token represents a specific amount of gold, so its value fluctuates with the price of gold. Tether also provides treasury-backed stablecoins, which are linked to U.S. Treasury bonds and other government-issued securities.
Equity at $20 billion, highest US Treasury holder
Beyond its profit, the company saw its equity rise above $20 billion. A huge part of this came about as Tether made strategic investments in industries like renewable energy, Bitcoin mining, AI, telecommunications, and education.
For example, Tether made a significant investment in Rumble, a video-sharing platform, amounting to $775 million. This investment involved purchasing approximately 103 million shares at a price of $7.50 per share.
The deal was structured to include a cash commitment of **$250 million, with the remaining funds supporting Rumble’s growth initiatives and a tender offer for additional shares.
Tether also increased its holdings of U.S. Treasuries, reaching a record $113 billion. This makes Tether one of the largest holders of U.S. government debt. Japan, China, Belgium, Luxembourg, Switzerland, and Ireland are among the top seven nations that hold U.S. Treasuries.
The report revealed that, for the first time, Tether’s excess reserve funds surpassed $7 billion, marking a 36% increase over the year. In the final quarter of 2024, the company issued over $23 billion in USD₮, bringing the total USDT issued throughout the year to $45 billion. By the end of 2024, this figure was nearly equal to the market capitalization of USDC, the second-largest stablecoin.
Tether also benefited from the rising value of its gold and Bitcoin holdings, which generated $5 billion in unrealized profits. Its investments in U.S. Treasuries and repo agreements brought in another $7 billion, while other traditional investments added $1 billion.
El Salvador grants Tether license
Another important milestone mentioned is the acquisition of a stablecoin issuer and Digital Asset Service Provider (DASP) license in El Salvador. In El Salvador, the Digital Asset Service Provider (DASP) license is regulated under the Digital Assets Issuance Law, which was passed in January 2023.
This law establishes a framework for companies dealing with digital assets, including exchanges, wallet providers, token issuers, and other blockchain-based financial services.
The license is issued by El Salvador’s National Commission for Digital Assets (CNAD), which oversees compliance with the country’s digital asset regulations.
For Tether, obtaining a Digital Asset Service Provider (DASP) license in El Salvador strengthens its regulatory legitimacy, giving it a legal framework to operate in a country that’s crypto-friendly.
After getting the license, the company sets up its headquarters in El Salvador, making it easier to expand, especially in Latin America, where the cryptocurrency market is expected to reach $3.7 billion in 2025, and in other crypto-friendly areas.
The license provides operational freedom so that Tether can continue issuing USD₮ and other stablecoins without the hassle of regulatory uncertainty seen in other regions like the EU. The MiCA rule has made crypto platforms like Coinbase, and Crypto.com to blacklist Tether USDT.
