Stablecoin Issuer Tether Reports $13B Profit Boosted by Bitcoin and Gold

Stablecoin issuer Tether reported $13 billion in net profit for 2024, driven by rising Bitcoin and gold prices. The company, which issues the largest stablecoin, USDT, generated $6 billion in profit in the last quarter of the year. Tether’s total assets stood at $143.7 billion, with excess reserves growing to $7 billion.

The company’s latest financial attestation, verified by accounting firm BDO Italy, revealed that a large portion of the profits came from U.S. Treasuries and unrealized gains on Bitcoin and gold holdings. Tether also increased its Bitcoin holdings to nearly 84,000 BTC by the end of 2024.

Bitcoin and Gold Drive Tether’s Profits

Stablecoin issuer Tether has reported that its $13 billion profit came from multiple sources, with Bitcoin and gold appreciation playing a key role.

Around $5 billion of the total profit resulted from the rising value of these assets. The remaining $7 billion came from returns on U.S. Treasuries and repurchase agreements.

The company increased its Bitcoin holdings in Q4 2024, marking its first such move since March. By the end of the year, Tether held around 84,000 BTC, worth approximately $7.8 billion. The firm’s U.S. Treasury holdings also rose to $94.5 billion, reinforcing its asset reserves.

USDT Issuance and Growing Market Presence

Tether’s stablecoin, USDT, saw significant issuance in 2024, with $45 billion issued throughout the year. In the fourth quarter alone, the company issued $23 billion in new USDT tokens.

The total market capitalization of USDT reached $140 billion, making it the fourth-largest cryptocurrency.

USDT remains a crucial part of the crypto market, particularly in emerging economies. Tether reported that its stablecoin now has 400 million users worldwide, with most adoption occurring in developing regions. The company continues to expand USDT’s role in payments, remittances, and savings.

Regulatory Challenges and European Market Restrictions

Despite its growth, Stablecoin issuer  Tether faces regulatory hurdles, particularly in Europe. The European Union’s Markets in Crypto-Assets (MiCA) regulations have led to the delisting of USDT from several exchanges. Crypto.com recently announced it would remove USDT and nine other tokens from its European platform by January 31, 2025.

MiCA regulations require stablecoins to have an e-money license to operate in the European Economic Area (EEA).

Tether has not received such authorization, leading to increased scrutiny. Several other exchanges, including Coinbase, delisted USDT in 2024 for similar reasons. Users on affected platforms have until March 31, 2025, to convert USDT into MiCA-compliant assets.

Tether’s Plans and Expansion into New Sectors

The USDT issuer continues to expand beyond stablecoins, with plans to enter new industries in 2025. The company announced upcoming projects in artificial intelligence, telecommunications, and financial services. Tether also aims to enhance crypto payments and remittances by integrating USDT with Bitcoin’s Lightning Network.

Tether CEO Paolo Ardoino emphasized the company’s focus on innovation, stating,

“Our goal is to offer practical solutions for remittances, payments, and other financial applications that demand both speed and reliability.”

The integration with the Lightning Network is expected to improve USDT transaction speed and lower fees, benefiting global users. Concurrently, as per earlier reports, as part of its expansion strategy, Tether recently announced plans to move its headquarters to El Salvador.