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Tether, the leading stablecoin provider, reported $2.5 billion in Q3 net profit, bringing its 2024 year-to-date profits to $7.7 billion, a substantial gain reflecting rising demand for stablecoins amid economic uncertainty.
What's the scoop?
- Record Circulation: It's been a boom year for
Tether as USDT circulation has surged, reaching an all-time high of nearly $120 billion — a 30% increase in 2024, equivalent to the entire market cap of its closest competitor. - Strong Reserves: Tether has also reported over $105 billion in cash and cash equivalents, with $102.5 billion exposed to U.S. Treasuries, plus a $6 billion reserve buffer.
- Stability in Focus: CEO Paolo Ardoino emphasized that Tether's strategic investments and reserve buffer have been key in maintaining Tether's dominance and stability.
Bankless Take:
Tether's recent performance underscores the growing role of stablecoins as demand for liquidity, stability, and yield rises across global markets. Plus, the company’s focus on U.S. Treasuries and reserves could set a competitive standard for risk management, making Tether’s next steps closely watched within the stablecoin space. For now, there's no signs of slowing down here, and Tether remains king of the hill.
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