Key Points:

• Tether net profits in 2024 surpass $10 billion, fueled by strong demand for its USDT stablecoin.
• The company has reinvested more than half of its profits, including a $775 million investment in Rumble.

Tether Holdings, the world’s largest stablecoin issuer, is on track to close out the year with more than $10 billion in net profits, according to CEO Paolo Ardoino.

Read more: Tether On-chain Wallets Reach 109 Million By Q4 2024 

Tether Net Profits Reach $10 Billion

The surge comes as demand for Tether’s USDT stablecoin, pegged to the US dollar, has soared alongside the cryptocurrency market’s rally.

The market capitalization of USDT grew this year by almost $50 billion to more than $140 billion, according to CoinMarketCap data. Most of Tether net profits come from investing the reserves that back USDT and other stablecoins into U.S. Treasuries, gold, and securities.

Ardoino explained that Tether reinvested over half of its profits for 2024 into different projects. Last week, Tether announced that it was investing $775 million into the video-sharing platform Rumble, from which $250 million will be in cash. Another $525 million is in support of a tender offer of up to 70 million shares at $7.50 each.

The Tether CEO stated that the company planned to ensure that by 2025, it invests not less than 50 per cent of Tether net profits, one area being in the field of AI. The company has been scheduled to release its own AI platform within the first quarter, providing access to AI through mobile devices.

Tether Eyes US Market Expansion Amid Regulatory Changes

Apart from technology, Tether has also ventured into businesses such as Bitcoin mining and biotechnology. According to Ardoino, the company is still eyeing the United States for more opportunities, expecting friendlier cryptocurrency regulations under the administration of President-elect Donald Trump.

At the centre of Tether’s U.S. operations is Howard Lutnick, Trump’s nominee for Commerce Secretary and head of Cantor Fitzgerald. Cantor Fitzgerald, which holds a stake in Tether and manages its reserves, is reportedly discussing strengthening financial ties with the company. Plans for a lending program are also under consideration.