Tether Holdings Reports Record $13B Profit in Q4 2024, Equity at $20B, Becomes Largest US Treasury Holder

Tether is a stablecoin issuer, best known for its USDT stablecoin. All of Tether's products are profitable, with USDT being the most popular.

Stablecoin issuer Tether Holdings Limited has reported record profits for the fourth quarter (Q4) of 2024, amassing over $13 billion in earnings.

As per its financial report, compiled by BDO, the company's equity surged above $20 billion, largely driven by strategic investments in renewable energy, Bitcoin mining, AI, telecommunications, and education.

notably, Tether also increased its holdings of U.S. Treasuries, reaching a record $113 billion, making it one of the largest holders of U.S. government debt among foreign entities.

In Q4 2024, Tether's excess reserve funds also surpassed $7 billion for the first time, marking a 36% increase year-over-year.

During the quarter, the company issued over $23 billion in USD₮, bringing the total USDT issued throughout 2024 to $45 billion.

Moreover, Tether benefited from the rising value of its gold and Bitcoin holdings, which generated $5 billion in unrealized profits. Its investments in U.S. Treasuries and repo agreements brought in another $7 billion, while other traditional investments added $1 billion.

Significantly, Tether also obtained a stablecoin issuer and Digital Asset Service Provider (DASP) license in El Salvador during Q4 2024.

The DASP license in El Salvador is granted by the National Commission for Digital Assets (CNAD) and is crucial for companies operating in the digital asset space within the country.

For Tether, acquiring a DASP license in El Salvador strengthens its regulatory standing, allowing it to operate legally in a crypto-friendly jurisdiction.

After securing the license, the company is setting up its headquarters in El Salvador, which will facilitate further expansion, particularly in Latin America, where the cryptocurrency market is projected to reach $3.7 billion by 2025.

This license provides Tether with operational freedom, enabling it to continue issuing USD₮ and other stablecoins without encountering the regulatory challenges faced in other regions.