As a seasoned analyst with over two decades of experience observing the financial industry’s evolution, I must admit that Tether Holdings Limited’s Q3 2024 results have left me genuinely impressed. The company’s ability to generate $2.4 billion in net profits, primarily from its substantial holdings in U.S. Treasuries and gold, is nothing short of remarkable.
In a recent announcement, Tether Holdings Limited (BVI), the creator of the stablecoin USDT, revealed robust Q3 2024 financial results. This success can be attributed to a mix of investment profits and escalating interest in its digital dollar. On October 31, Tether CEO Paolo Ardoino disclosed details about the quarter on the social media platform X, highlighting the company’s varied income streams, increasing market value, and rising popularity in developing regions.
In the quarter ending September 30, 2024, Tether announced a net profit of $2.4 billion. The main reasons for this earnings surge were gains from its significant investments in U.S. Treasuries and gold, contributing a combined total of $2.4 billion. US Treasuries contributed around $1.3 billion, while Tether’s gold holdings added roughly $1.1 billion to the profit margin. These assets form a crucial part of Tether’s liquidity and stability, with the company holding $102.5 billion in U.S. Treasuries, making it the 18th largest holder worldwide, surpassing countries such as Germany, Australia, and the UAE.
Tether not only has fully-backed reserves equal to USDT, but it also holds an extra $6 billion as additional reserves. This extra cash strengthens the firm’s financial stability and enables them to withstand increased global demand with ease.
In a recent Q3 report, Tether’s market value for USDT has grown by 30% so far this year, nearly reaching the total market capitalization of its main rival in the stablecoin sector. This expansion is largely due to an uptick in interest for USDT, especially in regions where conventional banking services might be scarce or less accessible.
Beyond its stablecoin reserves, Tether controls a total of $134.4 billion in assets spread across its various holdings. This diverse portfolio contains $7.7 billion invested within Tether Investments, a distinct entity separate from the stablecoin reserves. Tether Investments further owns around 7,100 bitcoins, showcasing the company’s approach to expand its investments beyond cash and treasury assets, aiming for potential long-term growth and risk mitigation.
Tether Insights, the research branch of our company, has released data highlighting a swift increase in the number of on-chain wallets handling USDT. Currently, more than 330 million on-chain wallets and accounts have received USDT, although this count does not account for millions of users dealing with USDT only through centralized trading platforms. Each quarter, around 35 million new on-chain wallets are created to handle USDT. This trend shows no signs of slowing down.
Ardoino highlighted that the bulk of Usdt (Tether) transactions predominantly occur in developing countries, where conventional banking services are sometimes scarce. He emphasized that despite frequent discussions about financial inclusion, actual progress towards it is often minimal, with many initiatives more focused on promotional events rather than substantive action.
As an analyst, I’ve been exploring the global reach of Tether (USDT), and it’s fascinating to note that this digital currency currently serves over 400 million individuals worldwide. However, this number pales in comparison to the roughly 3 billion people globally who are still underserved when it comes to basic financial services. From my perspective, Tether could play a crucial role in bridging this gap, offering a digital financial alternative to those who have been excluded from traditional banking systems.
As an analyst, I’m excited to report another successful quarter for Tether, with a net profit of $2.4 billion as of September 30, 2024. This substantial income is attributed to approximately $1.3 billion from our U.S. Treasuries investments and around $1.1 billion from our gold holdings.
— Paolo Ardoino 🤖🍐 (@paoloardoino) October 31, 2024
In Q3 2024, an audit by BDO, an independent accounting firm, verified that Tether’s financial status and reserve alignment were strong as of September 30, 2024. The report disclosed a remarkable $2.5 billion net profit for the quarter, raising Tether’s nine-month earnings to an impressive $7.7 billion, while group equity soared to an unprecedented $14.2 billion. Furthermore, Tether’s total assets swelled to $134.4 billion, highlighting the increasing financial might of the stablecoin provider.
The report emphasizes that Tether holds significant reserves, comprising approximately $105 billion in cash and cash equivalents, as well as $102.5 billion in U.S. Treasuries. This positions Tether among the top 18 reserve holders worldwide when compared to countries. Furthermore, Tether’s reserve cushion has expanded beyond $6 billion, demonstrating a robust liquidity approach aimed at maintaining USDT’s stability.
In addition to its holdings in stablecoins, Tether’s investment division manages approximately $7.7 billion in assets, primarily in areas such as renewable energy, Bitcoin mining, artificial intelligence, and telecommunications.
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2024-11-01 15:09