Tether Projects $10 Billion Net Profit in 2024 as USDT Demand Surges

Tether, which announced a $775Mn strategic investment in Rumble, is projecting a net profit of around $10 billion in 2024.

Stablecoin issuer Tether is projecting a net profit of around $10 billion in 2024.

Tether CEO Paolo Ardoino revealed the target during a recent interview with Axios.

The forecast comes at a time when the US dollar-pegged stablecoin USDT is experiencing strong demand, fueled by the ongoing rise in cryptocurrency prices, including Bitcoin – which has already crossed the historic $100000 mark.

Tether, which has over 350 million users worldwide, is a blockchain-based platform that enables the seamless use of fiat currencies in digital form. Originally launched as a digital token that is compatible with multiple blockchains, Tether now offers stablecoins linked to various fiat currencies, including the US Dollar (USDT), Euro (EURT), Mexican Peso (MXNT), and Chinese Renmin-bi (CNHT), as well as a gold-backed token (XAUT).

Speaking about its financials, Tether reported a $5.2 billion profit for the first half of 2024 in its Q2 report. During Q2 of 2 بسرعة2024, the company generated a net operating profit of $1.3 billion, compared to Q1’s earnings of $4.52 billion.

Moreover, the stablecoin issuer noted that its ownership of US Treasuries reached an all-time high of $97.6 billion in Q2. As per the report, over $8.3 billion worth of USDT was issued in Q2.

Tether generates its revenue by investing the fiat currencies it receives from issuing its USDT stablecoin into a variety of financial assets, including US Treasuries, T-bills, and precious metals.

Founded in 2014, the stablecoin added nearly $50 billion to its market capitalization this year, bringing it to over $140 billion, based on data from CoinMarketCap.

Interestingly, along with all these developments, the overall crypto market is anticipating a bright future, with US President-elect Donald Trump in its favor.

“Next year, we plan to deploy at least half of the profits into investments, including AI. Our investment is just beginning,” Ardoino said.

The company is also planning to launch its own AI platform, among other initiatives.