Tether's $13B Profit: Stablecoin Giant's Resilience Amid Legal Battle

Tether, the issuer of the world's largest stablecoin, USDT, has announced a net profit of $13 billion for the year 2024. This significant figure highlights the company's financial success and the growing demand for stablecoins in the cryptocurrency market.

An independent audit conducted by BDO Global revealed that Tether had excess reserves of $7.087 billion at the end of 2024. The audit found that Tether's assets, valued at $143.7 billion, exceeded its liabilities of $136.613 billion. The reserves were composed of various assets, including $118.335 billion in cash and cash equivalents, primarily US Treasury bills, and $7.8 billion in Bitcoin (BTC). Additionally, Tether held $5.3 billion in precious metals, $8.1 billion in secured loans, and $3.9 billion in other investments.

Tether's financial success in 2024 comes amidst a legal battle that began in 2022. The company was sued by a group of investors who alleged that USDT was not backed by any assets. In response, Tether argued that the plaintiffs' requests were "overbroad" and "burdensome." The recent audit serves as a testament to Tether's commitment to transparency and its ability to meet the demands of its users.

The stablecoin market has witnessed significant growth in recent years, with Tether leading the pack. As of 2024, USDT's market capitalization has reached an all-time high, reflecting the increasing trust and demand for stablecoins among cryptocurrency investors. Tether's ability to maintain a strong reserve and generate substantial profits demonstrates the company's resilience and adaptability in the ever-evolving cryptocurrency landscape.