- Releasing its most recent quarterly attestation, leading stablecoin provider Tether reported a record-breaking $5.2 billion in net profit for the first half of the year.
- The biggest stablecoin, USDT, is issued by Tether and has a market valuation of around $115 billion.
Leading stablecoin company Tether USDT -0.037% reported a record net profit of $5.2 billion for the first half of 2024 in its most recent quarterly attestation, which was revealed on Wednesday.
Additionally, the corporation reported a $1.3 billion net operational profit for the second quarter, mostly attributable to its yield-bearing reserves and investments. An international independent accounting agency called BDO carried out the attestation.
The biggest stablecoin, USDT, is issued by Tether and has a market valuation of around $115 billion. The post-COVID inflationary climate and the ensuing increase in interest rates, which were intended to cool an overheating economy, have been advantageous to the company.
According to a statement from the company, Tether Group’s financial prowess is maintained by a steady stream of income from conventional asset classes, primarily U.S. Treasury bonds.
Tether has been reinvesting its earnings in a variety of projects, including as peer-to-peer messaging app Keet, decentralized AI, and Bitcoin mining. Since at least 2022, its profits have increased annually.
Since there has never been a formal audit of USDT’s reserves, there has been debate surrounding this stablecoin that claims to be backed 1:1 by US dollars or dollar equivalents. The company was ordered by the New York Attorney General in February 2021 to provide quarterly attestation and pay a $18.5 million settlement for misrepresenting for a number of years about the stablecoin’s support.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
