Leading stablecoin issuer Tether sees $10 billion in net profits for 2024

The world’s biggest stablecoin issuer, Tether Holdings Ltd., is on track to close the year with more than $10 billion in net profits, Chief Executive Officer Paolo Ardoino said in an interview.

As Bitcoin and many other cryptocurrencies rallied to new all-time highs, demand for Tether’s USDT stablecoin — pegged to the dollar — has skyrocketed. The token added nearly $50 billion to its market capitalization this year, and it now stands at more than $140 billion, according to data tracker CoinMarketCap. Much of Tether’s earnings come from investing its reserves backing stablecoins, including USDT, into US Treasuries, gold and other securities.

This year, Tether invested more than half of its net profits, Ardoino said. On Friday, the company announced it agreed to invest $775 million into video-sharing network Rumble, including a primary commitment of $250 million in cash, with Tether also supporting Rumble’s tender offer for up to 70 million shares at $7.50 per share.

“Next year we plan to deploy at least half of the profits in investments” including in AI, Ardoino said. “Our investment is just at the beginning.” In the first quarter, Tether is planning to launch its own AI platform, making it possible for people to interact with artificial intelligence using their cell phones, he said.