How did Tether profit $13B in 2024 from USDT?

3 days ago

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Tether made $13 billion in profit in 2024 primarily from interest on reserves.
Tether holds $113 billion in US Treasuries and issues USDT against these reserves.
Profit sources include $7 billion from US Treasuries, $5 billion from gold & BTC, and $1 billion from other sources.
Additional revenue streams: transaction/redemption fees ($122M/week), collateralized loans, fintech partnerships, and proprietary assets.
Tether operates outside traditional banking rules, enabling higher profitability compared to competitors like Circle (USDC).
Challenges include lack of real audits, regulatory scrutiny, and interest-rate risks.
Tether's model thrives on massive scale, high interest rates, and operating like a 'shadow central bank'.

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