Tether, the issuer of the world's largest stablecoin USDT, has released its fourth-quarter attestation report for 2024, signed by global accounting firm BDO. The report reveals a monumental annual net profit exceeding $13 billion. Key financial highlights include holding $113 billion in U.S. Treasury bonds, achieving a circulating supply of $143.7 billion for USDT, and accumulating more than $7 billion in excess reserves during the fourth quarter alone.
Tether's Q4 2024 Financial Performance
The attestation report from BDO, one of the world's top five accounting firms, provides a detailed snapshot of Tether's financial health as of December 31, 2024. The consolidated financial figures confirm that the group's total assets amounted to $143.7 billion, while its total liabilities were $136.6 billion. This significant surplus, where assets substantially exceed liabilities, is referred to by Tether as its "Shareholder Capital Cushion," which stood at approximately $7.09 billion.
A dominant portion of the asset reserves, 82.35%, is held in cash, cash equivalents, and other short-term deposits. A substantial part of this is allocated to U.S. Treasury bonds, with direct and indirect holdings reaching a staggering $113 billion.
Beyond traditional assets, Tether’s portfolio also includes strategic holdings in digital and physical assets. The company reported owning Bitcoin valued at $7.86 billion and precious metals, primarily gold, valued at $5.32 billion.
Breakdown of the $13 Billion Annual Profit
The remarkable $13 billion net profit for the full year 2024 was driven by multiple revenue streams. The majority, approximately $7 billion, was generated from returns on its vast holdings of U.S. Treasury bonds. An additional $5 billion originated from unrealized gains on its strategic investments in gold and Bitcoin. The remaining $1 billion in profit was contributed by the group's other traditional investment activities.
This financial success has empowered Tether to significantly expand its proprietary investment arm, Tether Investments Limited, whose equity has now grown to $12.4 billion. This subsidiary makes strategic investments across pivotal future industries, including renewable energy, Bitcoin mining, artificial intelligence, telecommunications, and education.
In a major strategic move, Tether International SA de CV secured a stablecoin issuer and Digital Asset Service Provider (DASP) license in El Salvador. The country has now become the new headquarters for the group, reinforcing Tether’s stated mission to drive global financial inclusion and technological innovation. This expansion is part of a broader strategy to reinvest the substantial profits from its stablecoin operations into diverse and forward-looking ventures.
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USDT's Market Dominance and Circulating Supply
Tether highlighted its overwhelming dominance in the stablecoin market throughout 2024. In the fourth quarter alone, the net issuance of USDT exceeded $23 billion. For the entire year, the total net issuance reached approximately $45 billion. To put this into perspective, this figure is nearly equivalent to the entire market capitalization of its largest competitor.
Currently, the market capitalization of USDT has soared past $139.3 billion. This commanding presence means USDT constitutes about 62% of the entire stablecoin market, solidifying its position as the primary liquidity and trading pair vehicle across global cryptocurrency exchanges.
Frequently Asked Questions
What is an attestation report, and why is it important?
An attestation report is an independent review conducted by a third-party accounting firm to verify a company's financial claims. For Tether, these regular reports are crucial for providing transparency and assuring users that each USDT stablecoin in circulation is fully backed by sufficient reserves.
How does Tether generate such large profits?
Tether's profits primarily come from the interest earned on its massive reserves of U.S. Treasury bonds and other high-quality assets. Additional gains are realized through strategic investments, including unrealized profits from its holdings of Bitcoin and gold, as well as returns from its venture investments in technology sectors.
What are 'unrealized gains'?
Unrealized gains represent the increase in the value of an asset that is still being held, not sold. For example, the $5 billion gain from gold and Bitcoin is based on their market price increase since Tether purchased them; this profit will only be fully realized if the assets are sold at that higher price.
What does 'excess reserves' or 'Shareholder Capital Cushion' mean?
This refers to the amount by which Tether's total assets exceed the total value of USDT stablecoins in circulation. This multi-billion dollar buffer is designed to act as an extra layer of protection, ensuring full redemption capacity even in volatile market conditions.
How does Tether's performance impact the broader crypto market?
As the largest stablecoin, Tether's health and transparency are vital for the entire cryptocurrency ecosystem. Its vast liquidity is essential for trading, lending, and as a safe-haven asset during market turbulence. Strong profits and reserves bolster confidence in its stability.
Is my USDT safe?
Based on the attestation reports, Tether claims to hold reserves exceeding its liabilities. However, all investments carry inherent risk. It is important to understand that while designed to be stable, no asset is entirely risk-free, and you should always conduct your own research.
Disclaimer: Cryptocurrency investments carry a high level of risk and can be extremely volatile. There is a possibility of losing all of your invested capital. Please carefully assess your risk tolerance before investing.