Tether reports record $4.52 billion net profit in Q1 2024

Tether, the company behind the popular stablecoin USDT, has disclosed a record net profit of $4.52 billion for the first quarter of 2024.

The company’s latest attestation outlined a big jump in profits primarily attributed to gains from its U.S. Treasury holdings, alongside profits from bitcoin and gold positions.

The attestation also shed light on Tether’s robust financial position, revealing a net equity of $11.37 billion as of March 31. That’s a big jump from the $7.01 billion it booked at the end of December 2023.

The bulk of the $4.52 billion profit came from operating profits tied to United States Treasury holdings, while the remaining $3.52 billion was credited to market-to-market gains from positions in Bitcoin and gold.

Tether’s USDT issuance skyrocketed in the first quarter of 2024, reaching $12.5 billion. Additionally, the company boosted its excess reserves by $1 billion, bringing the total to nearly $6.3 billion, in order to further support its stablecoin offerings.

The report also detailed over $104 billion in liabilities related to “digital tokens issued,” while Tether’s reserve assets surpassed its liabilities by over $6.2 billion as of March 31.

“Tether continues to shatter records with a new profit benchmark of $4.52 billion, reflecting the company’s sheer financial strength and stability. In reporting not just the composition of our reserves, but now the group’s net equity of $11.37 billion, Tether is again raising the bar in the cryptocurrency industry in the realms of transparency and trust,” Tether CEO Paolo Ardoino said.

USDT plays a pivotal role in the digital asset market as a crucial infrastructure component. Acting as a bridge between traditional fiat currency and blockchain-based markets, USDT provides liquidity for trading and lending activities. Moreover, its utility extends to facilitating transfers and savings, particularly in developing regions, where it offers access to dollar-denominated assets outside the confines of traditional banking systems.