Tether, the world’s largest stablecoin issuer, is expected to end 2024 with a net profit of over $10 billion, as stated by CEO Paolo Ardoino.
With Bitcoin and other cryptocurrencies reaching record highs this year, there has been a surge in demand for Tether’s USDT stablecoin, which is pegged to the U.S. dollar. According to CoinMarketCap, the market value of USDT is projected to increase by around $50 billion, reaching over $140 billion by 2024.
The primary source of revenue for Tether comes from investing the reserves that back its stablecoins in assets such as U.S. Treasury bonds, gold, and other securities. Ardoino mentioned that more than half of the net profit earned this year has been reinvested into various initiatives.
Tether recently announced a $775 million investment in the video-sharing platform Rumble. This investment includes a $250 million cash investment and support for a takeover offer of up to 70 million shares at $7.50 each.
In addition, Ardoino disclosed Tether’s plans to venture into artificial intelligence (AI). The company aims to launch its own AI platform in the first quarter of 2025, enabling users to interact with AI through their mobile phones. Ardoino stated, “Next year, we plan to allocate at least half of the profits to investments, including AI.”
Tether is also exploring further investments in the United States, expecting a more favorable regulatory environment under President-elect Donald Trump. Ardoino highlighted the strengthened ties between Tether and Howard Lutnick, the nominee for Secretary of Commerce and chairman of Cantor Fitzgerald. Cantor Fitzgerald, which holds a stake in Tether and serves as its custodian for reserves, is reportedly discussing a lending program and other financial collaborations.
*This article does not provide investment advice.
