Stablecoin giant Tether revealed that it generated $2.5 billion in profit during the third quarter of 2024, bringing its nine-month profit to $7.7 billion.
According to Tether’s latest report, the company saw a surge in its stablecoin issuance, reaching nearly US$120 billion in circulation, a new all-time high and a 30% increase for the year.
This growth comes as demand for stablecoins increases in response to inflation and rising interest rates. The US Treasury recently acknowledged the role of stablecoins in financial markets, while warning of possible challenges ahead.
Tether’s latest attestation, verified by BDO Italy, reveals $125.5 billion in assets versus $119.4 billion in liabilities, bringing excess reserves to over $6 billion. Most of the reserve assets, approximately $105 billion, are in cash and equivalents, with massive exposure to the U.S. Treasury through direct holdings and money market funds. Tether also holds $5 billion in gold and $4.8 billion in bitcoin, among other assets.
The company’s venture capital arm, Tether Investments, increased its net equity value to $7.7 billion, up from $6.2 billion in the second quarter, and now includes 2,7100 bitcoin holdings worth nearly 500 million dollars. These investments support Tether’s expansion into the energy, mining, and artificial intelligence sectors.
USDT, Tether’s flagship stablecoin, is the third largest cryptocurrency by market capitalization and remains a key source of liquidity on exchanges, particularly in emerging markets.
At the same time, Tether responded to recent allegations of a US investigation into sanctions and AML violations, with CEO Ardoino affirming Tether’s compliance with US sanctions and its commitment to holding US debt.
Ardoino criticized the Wall Street Journal report, adding that Tether regularly works with law enforcement to thwart illegal activity and has even helped recover $109 million linked to fraud and other illicit actions since 2014 .
Tether CEO He also highlighted what he sees as a lagging regulatory approach in the United States, which he says has forced many cryptocurrency companies to seek more favorable jurisdictions abroad. However, he hopes regulatory attitudes could change after the 2024 US presidential election.
US authorities are reportedly investigating Tether, the company behind the world’s largest stablecoin USDT, for allegedly violating anti-money laundering regulations and sanctions.
According to a Wall Street Journal article, the investigation focuses on Tether’s role in facilitating illicit activities such as terrorism, drug trafficking and cybercrime. The U.S. Attorney’s Office in Manhattan and the U.S. Treasury Department are reportedly involved, with the latter considering sanctions that could prevent U.S. companies from doing business with Tether.
This is not the first time Tether has come under scrutiny. The Commodity Futures Trading Commission (CFTC) has previously alleged that Tether made misleading statements about its reserves. However, Tether says it complies with legal standards and proactively works with global law enforcement to ensure its platform is not misused.
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