After an Auditing Process for 2024, Tether Holdings Limited Reported a Yearly Net Profit Exceeding $13 Billion

After an auditing process for 2024, Tether Holdings Limited, the company behind the U.S. dollar-pegged stablecoin $USDT, reported a yearly net profit exceeding $13 billion

After an auditing process for 2024, Tether Holdings Limited, the company behind the U.S. dollar-pegged stablecoin $USDT, reported a yearly net profit exceeding $13 billion and achieved all-time high records in the fourth quarter, according to the global independent accounting firm BDO.

* The reported profit makes the company’s value surpass $20 billion.

* According to Tether, the completed audit findings reaffirm the accuracy of its Consolidated Reserves Report and provide a detailed breakdown of the assets held as reserves for the tokens issued.

* The auditor’s report for the year ended December 31, 2024, also revealed a substantial contribution to the reported profit with $9.4 billion derived from net interest income on U.S. Treasury bills.

* The report further highlights the company’s strong financial standing and commitment to transparency.

* The company’s main token, $USDT, is the largest stablecoin by market capitalization.

* As of December 31, 2024, Tether’s U.S. Treasury holdings exceeded $113 billion, while its reserve buffer amounted to more than $7 billion.

* Moreover, Tether completed the year with an outstanding balance of $45 billion in new token issuance.

* The company also obtained a full license as a stablecoin issuer and Digital Asset Service Provider in El Salvador, marking a milestone in expanding its operations.

* Furthermore, Tether has made strategic investments in promising sectors like artificial intelligence and blockchain technology, aligning itself with emerging trends and contributing to innovation.

The Profit: The auditor’s report detailed Tether’s $13 billion profit contribution as follows:

* Net interest income on U.S. Treasury bills: $9.4 billion

* Interest income on other assets: $2 billion

* Net gains on fair value through profit or loss (FVPL) on available-for-sale (AFS) financial instruments: $1 billion

* Other comprehensive income (OCI): $500 million

* Less: operating expenses: $5 billion

Q4 2024 Milestones: In the fourth quarter of 2024 alone, Tether achieved record-breaking numbers:

* The company's U.S. Treasury bill holdings surpassed $113 billion, demonstrating its significant role in the U.S. financial markets.

* Tether's tokens are backed by fully allocated reserves, which amounted to more than $7 billion in the fourth quarter, providing a safety net for its operations.

* The company issued a record-breaking $45 billion in new tokens during the year, catering to the increasing demand for digital assets.

* Finally, the report highlighted that the Group's total Equity Capital, which includes retained earnings and other capital components, surpassed $20 billion.

By the Numbers: Other financial data of Tether as of December 31, 2024:

* Total assets: $120 billion

* Total liabilities: $100 billion

* Net income for the year: $13 billion

* Common size analysis of revenue: interest income made up 93% of total revenue

* The company's main token, $USDT, is the largest stablecoin by market capitalization.

Key Quote: "Today's report by BDO, a global independent accounting firm, marks a significant milestone for Tether as we maintain our commitment to complete transparency," said Paolo Ardoino, Chief Executive Officer at Tether. "The completed audit findings reaffirm the accuracy of our Consolidated Reserves Report and provide a detailed breakdown of the assets held as reserves for the tokens issued."

"With U.S. Treasury holdings surpassing $113 billion, a reserve buffer exceeding $7 billion, and $45 billion in new token issuance for the year, Tether continues to set the gold standard for stability and trust in the digital assets space. The Group Equity surpassed $20 billion. Our licensing milestone in El Salvador and investments in promising sectors like AI and blockchain technology highlight our commitment to financial inclusion and resilience."

Zoom Out: Recently, Tether relocated its headquarters to El Salvador after securing licenses as a stablecoin issuer and Digital Asset Service Provider in the country.

Worth Reading: Also in 2024, Tether said that $USDT has reached a new milestone, with 109 million on-chain wallets holding the stablecoin.

This article is published on BitPinas: $USDT Issuer Tether Records $13B Profit in 2024 Alone