Tether sets new profit records in the third quarter of 2024

In the third quarter of 2024, Tether achieved record profits of 7.7 billion dollars, a rapidly growing reserve buffer, and a circulation of USD₮ nearing 120 billion, confirming its financial solidity.

Let’s see all the details in this article. 

With nearly 120 billion USD₮ in circulation, Tether strengthens its position as the global leader of stablecoins

Tether, world leader in the stablecoin sector, has released the financial results for the third quarter of 2024, highlighting extraordinary growth and further consolidating its leading position in the crypto and digital currency space. 

The report, certified by the global accounting firm BDO, demonstrates Tether’s continuous progress in terms of transparency and financial solidity, setting new benchmarks and record results.

The financial data presented in the Consolidated Financial Figures and Reserves Report (CFFRR) reveal that Tether has achieved a quarterly net profit of 2.5 billion dollars.

Thus contributing to a consolidated profit of a substantial 7.7 billion in the first nine months of 2024. These results translate into an increase in the group’s net equity to 14.2 billion dollars and a total consolidated assets of 134.4 billion. 

In other words, marking new all-time highs for the company. These financial successes demonstrate Tether’s constant commitment to strengthening its stability, confirming the trust of the market and users.

One of the most significant aspects of the report is the achievement of a historic high in the circulation of USD₮, Tether’s leading stablecoin. The latter reached almost 120 billion dollars in circulation as of September 30, 2024.

This figure represents an increase of 30% compared to the beginning of the year, with an increase of 27.8 billion dollars of USD₮ tokens issued in just the first nine months of 2024. 

The constantly growing demand for USD₮ highlights the trust that the global market places in Tether’s stablecoin as a reliable tool for exchanges and transactions worldwide.

The ability of Tether to maintain a growing demand is based on transparent and responsible financial management. This allows users to trust the stability and value of the tokens. 

Solid management of reserves and strategic investments

The security of assets is one of Tether’s main objectives, and the Q3 2024 report demonstrates the company’s ongoing commitment to ensuring liquidity and stability for its users. 

At the end of the third quarter, the stablecoin issuing companies of Tether had accumulated cash and cash equivalents totaling over 105 billion dollars. 

Of these, a full 102.5 billion are in exposures to U.S. Treasuries, a figure that surpasses that of many countries such as Germany, Australia, and the United Arab Emirates. 

If Tether were considered a sovereign state, it would rank among the top 18 global holders of US Treasury securities. A position that underscores the robustness of its reserve management model.

In addition to the reserves linked to the Treasury, Tether has implemented a reserve buffer that has exceeded 6 billion dollars, offering additional assurance for users. 

The increase in reserves demonstrates the prudence with which the company manages its finances, ensuring that assets exceed liabilities and preserving the stability of the token even in moments of uncertainty in the global markets.

Tether has also invested in a series of strategic sectors to support its long-term vision, such as renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education.

These investments, managed by the Tether Investments division, are not included in the reserves that support the tokens. Thus allowing the company to allocate resources to projects that promote innovation and global inclusion.

A key sector of this portfolio is theartificial intelligence. A rapidly expanding field that aligns with Tether’s mission to stay at the forefront of technological innovation.

Investments in renewable energy and Bitcoin mining represent the company’s commitment to reducing the environmental impact of the criptovalute sector and ensuring a sustainable production of value.

Paolo Ardoino: stability and transparency as priorities

The CEO of Tether, Paolo Ardoino, reaffirmed the company’s determination to ensure transparency and prudent risk management:

“The results of Tether in the third quarter of 2024 demonstrate our relentless commitment to transparency, liquidity, and responsible risk management.”

He then emphasized how reaching almost 120 billion USD₮ in circulation and the exposure to the U.S. Treasury of 102.5 billion dollars highlight the financial solidity of Tether. 

The CEO stated that the presence of a reserve buffer of over 6 billion and strategic investments in high-potential sectors are tangible signs of the visione dell’azienda.