Tether, the world’s largest stablecoin issuer, reported a staggering $13 billion in profits last year despite ongoing scrutiny over its financial transparency.
The announcement came as Tether came up during the confirmation hearing for Donald Trump’s nominee for Secretary of Commerce.
Presidential candidate Howard Lutnick, chairman of Cantor Fitzgerald LP, a major banking partner of Tether, disclosed during the hearing that Cantor Fitzgerald holds a convertible bond with Tether and suggested that dollar-denominated stablecoins should be subject to regulation.
Tether has long faced criticism for its lack of audited financial statements, relying instead on third-party attestations from BDO published quarterly. These attestations provide only a snapshot of the firm’s finances rather than a full audit, raising concerns among regulators and market watchdogs.
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Despite its limited disclosure practices, Tether’s $13 billion in profits rivals Wall Street’s big investment banks. Goldman Sachs, for example, had $14.3 billion in net income on $53.5 billion in revenue last year. But Tether’s much smaller workforce makes its profitability particularly notable.
The transparency of Tether’s reserves has been a hot topic as regulators have questioned the firm’s ability to handle large-scale buybacks during market downturns. The firm claims to have more than $7 billion in excess reserves and recently increased its exposure to U.S. Treasury bonds, bringing its total assets to $113 billion.
Demand for Tether’s USDT ($1.00) stablecoin has soared, pushing its market value above $143 billion. Tether has further solidified its dominance in the stablecoin sector by issuing over $23 billion worth of USDT in the last quarter of 2024.
*This is not investment advice.
Continue Reading: Tether, The World’s Largest Stablecoin Company, Reveals How Much Total Profit It Made In 2024
