Tether reported a staggering $7.7 billion profit for the first nine months of 2024.
On October 31, 2024, Tether sent out its Q3 2024 report revealing that the company amassed $102.5 billion in U.S. Treasury securities, which constitutes a significant portion of its reserve holdings.
Tether’s response to regulatory pressure
Despite these impressive financial achievements, Tether continues to face intense regulatory scrutiny from governments and financial regulators around the world. In recent years, several regulators have raised concerns about the transparency of audits of Tether’s reserves and the composition of its assets.
BREAKING: Federal Investigators Probe Cryptocurrency Company #Attached.Authorities are investigating possible violations of anti-money laundering rules and sanctions. pic.twitter.com/RsHxpaXvZM
– WallStreetPro (@wallstreetpro) October 25, 2024
BREAKING: Federal Investigators Probe Cryptocurrency Company The central question is whether Tether’s reserves are truly sufficient to support every USDT token in circulation.
Commenting on the results, Paolo Ardoino, CEO of Tether, said: “Tether’s performance in Q3 2024 demonstrates our relentless commitment to transparency, liquidity and responsible risk management.
The United States Securities and Exchange Commission (SEC) has also expressed interest in stablecoins like USDT due to their potential impact on financial stability. In particular, regulators are concerned about how a sudden loss of trust in a major stablecoin issuer could trigger liquidity crises in crypto markets and beyond.
Recently, in an exclusive interview with 99Bitcoins, Ardoino commented on the regulations and said: “I think it is important that the United States develops sensible regulations that protect the end customer but also enable the industry and the technology to thrive. Sometimes regulators, for example the European one I think, tend to kill an industry with bureaucracy rather than actually trying to help the industry develop in the right way to protect users.
Related: Tether CEO Paolo Ardoino Hopes for Net Positive US Election Outcome, Says Bitcoin Strategic Reserve is a Great Idea: 99Bitcoins Exclusive
Group net profit of $2.5 billion contributes to consolidated profit of $7.7 billion in 2024
Tether reported group net profit of $2.5 billion, “contributing to nine-month 2024 consolidated profit of $7.7 billion and group equity reaching $14.2 billion and a total assets on a consolidated basis of $134.4 billion – all of which are all-time highs (ATH).”
The total circulation of USDT now stands at almost $120 billion, making it by far the most widely used stable currency in the world.
Tether, the issuer of the world’s largest stablecoin, has an impressive reserve buffer of over $6 billion, reinforcing its claim to be fully backed by high-quality assets.
“Reaching the US$120 billion milestone and reporting $102.5 billion in exposure to the US Treasury highlights the Company’s unprecedented financial strength,” Ardoino said. “By increasing our reserve pool to over $6 billion and maintaining a focus on strategic investments, Tether is once again setting the standard for stability in the financial space.”
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