Tether, the issuer of the USDT stablecoin, reported earnings of $13 billion in 2024, surpassing major financial institutions like Goldman Sachs. With over 100 million wallets holding USDT, Tether's expansion faces challenges due to President Trump's new tariffs, which have weakened the U.S. dollar and raised concerns about a broader confidence crisis. CEO Paolo Ardoino emphasizes the importance of U.S. support for dollar-based stablecoins to maintain financial leadership.
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Financial Performance: Tether's net yearly profits exceeded $13 billion in 2024, with group equity surpassing $20 billion. The company's exposure to U.S. Treasuries reached a record $113 billion in direct and indirect holdings.
Market Position: USDT has become vital in emerging markets for remittances and as a hedge against local economic instability. Over 100 million wallets currently hold USDT, making it one of the most widespread forms of digital dollar access.
Challenges: The recent imposition of tariffs by the U.S. administration has led to concerns about the weakening of the U.S. dollar and a potential confidence crisis. Rival nations like China and Russia are exploring alternatives to the dollar, including gold-backed stablecoins. Tether's CEO, Paolo Ardoino, warns that failure to support dollar-based stablecoins may lead to dedollarization driven by advances in digital currencies and shifting global alliances.
