USDT profitability – Tether 2024 income
In the first half of 2024, Tether quietly posted one of the biggest haul of income in crypto history, taking a deaf $ 5.2 billion over just two quarters.
That’s not a typo: $ 4.52 billion in Q1, followed by another $ 1.3 billion in Q2.
Contrary to popular beliefs, this windfall does not come from trading fees or printing more USDT (USDT). It is almost completely from the revenue of interest in the genitals of the Tether reserves – mainly US wealth.
By mid -2024, Tether has accumulated $ 97.6 billion worth of US government debt, silently one of the largest treasurys holders in the world, exceeding the reserves of many countries with sovereignty.
Everyone shows a major part of Stablecoin business model: Users deposit FIAT (such as USD), and in return, the Tether Mints USDT while those dollars are investing at low risk, yield assets.
So, if you’ve ever thought about how to make money stablecoins, this is: Fiat-back stablecoins like USDT acting as tether as financial mediators. By global interest rates are still elevated, that Passive Income Engine now stronger than ever before.
Do you know? The first stablecoin in the world was Bitusd, launched in July 2014. Pioneer blockchain created Charles Hoskinson and Dan Larimer on the Bitshares platform, Bitusd attempted to maintain its peg by locking BTS tokens on intelligent contracts as collateral.
How Tether can earn money
Stablecoin’s releases do not lend money like traditional banks, but they often earn a lot.
In March 2025, Tether’s total exposure to the US Treasurys – covering direct handling, reversed repos and Money market funds – approaches $ 120 billion. It makes one of the top 20 treasury holders worldwide, with exposure greater than many governments.
But the Treasurys is just a piece of puzzle. Tether’s Approach to different reserves Includes gold, bitcoin (Btc) and a safe loan, which offers both produce and protection against volatility. In Q1 2025, for example, gold positions helped buffer swings in crypto markets, showing how crypto pegging mechanisms could rely on a mix of hard assets, not just dollars.
Meanwhile, Tether’s ongoing release of collateralized loans (which -back -back reserves) adds another layer of income. Although less public, these loans have a history that brings ways -a million -year -olds.
With $ 5.6 billion in excess reserve Until March 2025, Tether operates similar to a conservative asset manager than a tech startup. Stablecoin revenue sources come from interest to Treasurys and precious metals to digital assets and lending, proving that the model of USDT profitability is developed in more of the crypto hype.
Do you know? Tether was founded in 2014 in Santa Monica, California by Brock Pierce, Reeve Collins and Craig Sellars. It was initially called “Realcoin” and was built on the Omni Layer of Bitcoin, re -rebraned in “Tether” on November 20, 2014.
Tether’s hidden profits: fee, lending and fintech
Interest revenue may drive Tether’s main return, but this is not just the stream of income. Here’s a deeper look at how Tether can make money just beyond the harvest.
1. Transaction and Conversion fees
While USDT shifts may not be Exchange partnerships.
In early 2025, Tether was raking to over $ 122 million per week on fees across networks such as EthereumTron and Solana, according to Defillama and Cryptorank. That adds more than $ 6.4 billion annually, the adoption of Tether’s position not only as the leading Stablecoin by Market Cap but also as one of the profitable crypto companies, era.
2. Secured Lending
Even after the scale of its lending operations, Tether continues to release collateralized loans, supported by its reserves. They usually produce more than government bonds and offer high margin, low-risk income, which contributes significantly to Tether’s bottom line, even though the exact numbers remain unspecified.
3. Fintech integration and collaboration
Tether also benefits from the growing ecosystem, integration with WalletsFintech platform and replace. These integrations (including players like Paypal and Fiserv) will open new channels for income by accessing API, Transaction fees and greater use of the network.
Why did Tether earn in 2024
Tether’s 2024 revenue emerged thanks to the high interest rate, massive reserve scale and the flexibility to move faster than traditional financial institutions.
1. A perfectly-rated-rated environment
Throughout 2024, the US Federal Reserve held the rates at the elevated level, which was directly strengthened Yields to US TreasurysTether’s one biggest driver of income driver. By ten -ten -billions of parked in these government bonds, Tether’s return was a balloon. This is the main model of stablecoin revenue: hold user deposits in harvest-bearing, fiat-backed assets and pocket interest.
2. Incompatible scale
By mid-2024, Tether gathered $ 118 billion in total reserves-more than enough to back each USDT in circulation. Even small changes in interest rates translated along the way -millions of further income. This type of scale is a major reason why Tether’s income in 2024 dwarfed to every other StableCoin redeem.
3. Flexibility of Operational
Unlike regulated banks, Tether does not break down capital requirements or complex compliance layers. Its centralized structure provides its transfer quickly, reality capital to chase the yield, optimizing the duration of the reserve and reaction to market conditions without red tape.
Together, these three levers – high yield, massive scale and rapid implementation – made 2024 a perfect storm of stablecoin profitability.
Stablecoin business model risks and criticism
But while the StableCoin business model may not be the best -belief, it is not without controversy, and Tether remains amid many debates.
Continuous pressure regulation
Tether’s reserve skills and adherence to anti-money laundering (AML) has long drew the investigation from regulators such as Security and Commission on Exchange and International Financial Watchdog. While Tether is now publishing Regular Certificates And hired by seasoned financial leaders, it still has not released a whole, independent audit. This will leave the question of whether each USDT is truly back -to -back interpretation.
Delisting in Europe
Since early 2025, the main platforms regulated by the EU, including Binance, Kraken and Coinbase.
Interest rate risk
Tether’s income engine was built on interest income from Treasurys. However, the same strength is a weakness. If Fed cuts rates by at least 50 basic points, the annual income may drop by more than $ 600 million, forcing Tether to chase the produce elsewhere or receive lighter margins.
Risk of asset concentration
Although Treasurys provides stability, they also create a concentration risk. As tether shifting more than goldCrypto and secure loans, it exposes itself to volatility in the market and risk of counterpart. That is a trade-off between stability and yield, and one that can be clearer as interest rates fall.
Do you know? Under the MICA rules of the EU, “significant” stablecoins such as the USDT should hold at least 60% of reserves on European banks – a required tether has refused.
Stablecoin revenues, explained: Tether compared to other stablecoin issues
The main blueprint for how the stablecoins make money across the board: Mint token, hold Fiat reserves and earn interest. But Tether’s dominance makes all the difference.
Until June 2025:
That scale just gives Tether a massive edge of profitability. In 2024, it reported nearly $ 13 billion in gross profit. Conversely, Circle – despite the strong adherence and focus of the institutional – just gained $ 156 million in net income.
Why the space? The Circle divides an interest income with Coinbase, holding reserves on US banks and MABAWDIT months through a large four firm (Deloitte and Touche). It is a transparent, conservative model that appeals to institutions but limits revenue.
Paxos follows a similar path: smaller footprints, tight regulations, limited upside down. Tether, meanwhile, retains most of its revenues, performs volume games and operates with fewer obstacles.
This contrast places a tension between transparency and income in the view of crypto models.
With regulations that are slowly getting up to tetherEventually it would have to choose between maintaining a high-income sky in an increasingly limited market or adapting to the stricter policies that are now governing its rivals.
