Stablecoin issuer Tether has announced a notable third-quarter net profit of $2.5 billion, bringing its total earnings for 2024 to $7.7 billion. This growth boosted Tether’s equity to a record $14.2 billion this year. Meanwhile, the circulation of Tether’s USDT stablecoin rose to nearly $120 billion this quarter—a 30% increase in tokens issued throughout the year.
Tether Expands Excess Reserves by 15%
In its latest report, Tether disclosed that its reserves, largely comprising cash and cash equivalents, now exceed $105 billion. Of this, $102.5 billion is invested in U.S. Treasury securities—a level that would position Tether among the top 18 holders globally if classified as a sovereign entity. Tether’s excess reserve buffer increased by 15% this year, totaling over $6 billion. Additionally, the company saw unrealized gains of $1.1 billion in its gold reserves.
Asset Breakdown: $125.5B in Total, Including $105B in Cash and $4.9B in Gold
BDO Italy’s accounting report reveals that Tether International Limited and Tether Limited hold $125.5 billion in assets, covering $119.4 billion in liabilities as of September 30. This bolstered Tether’s excess reserves backing USDT by more than $6 billion. The company’s cash and equivalents total $105 billion, including $84.5 billion in U.S. Treasury bills. In total, Tether’s exposure to Treasuries—including direct holdings, money market investments, and reverse repurchase agreements—reached $102 billion.
In addition, Tether holds $4.9 billion in gold and $4.7 billion in Bitcoin, with its investment arm owning an additional 7,100 BTC.
CEO Dismisses US Investigation Speculation
Since partnering with BDO Italia in July 2022, Tether has provided regular reserve audits to enhance transparency and reassure investors and regulators about USDT’s backing. This move follows past scrutiny regarding its reserve adequacy and transparency. Recently, the Wall Street Journal reported a potential investigation by U.S. federal authorities into Tether over alleged violations of sanctions and anti-money laundering laws. However, Tether CEO Paolo Ardoino dismissed these claims as “old noise.”
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