Tether Records $14 Billion in Profits for a Record-Breaking Year
Tether, the issuer of the USDT stablecoin, has had an exceptional year in 2024 with $13.7 billion in net profits, an all-time high for the company. The majority of these profits, $7 billion, came from holdings in US Treasury bonds and repurchase agreements (repos), while $5 billion came from the appreciation of gold and bitcoin reserves. Other investments contributed an additional $1 billion.
According to the latest attestation report from accounting firm BDO Italy, Tether’s total assets amount to $143.7 billion, compared to liabilities of $136.6 billion, leaving an excess reserve of $7 billion to ensure the stability of USDT. Its holdings in US Treasury bonds also reached a peak of $94.5 billion.
Tether has strengthened its position in bitcoin by increasing its reserves for the first time since March, reaching 84,000 BTC, valued at approximately $7.8 billion at the end of the year. The company is thus consolidating its position in the digital asset sector, leveraging a mixed strategy of fiat, precious metals, and cryptocurrencies.
Tether Strengthens Presence in the Bitcoin Ecosystem with Lightning
In line with its ambitions, Tether is set to integrate its USDT stablecoin on the Lightning Network, Bitcoin’s second-layer solution. This announcement was made jointly by Tether CEO Paolo Ardoino and Lightning Labs CEO Elizabeth Stark at the Plan B conference in San Salvador on January 30, 2025.
The Taproot Assets protocol, developed by Lightning Labs, now allows for the issuance and management of tokenized assets on the Bitcoin network. This breakthrough opens the door to mass adoption of USDT payments on Lightning, offering users a fast, cost-effective, and highly scalable solution for digital dollar transactions.
Increased Adoption of Bitcoin and USDT Payments on Lightning
The integration of USDT on Lightning represents a major turning point for the Bitcoin network. It will allow merchants already accepting Bitcoin via Lightning to add USDT as a payment option, without requiring new infrastructure. This feature could significantly increase cryptocurrency adoption in emerging markets, where stablecoins are often used as a hedge against inflation and local currency volatility.
Ryan Gentry, Director of Business Development at Lightning Labs, emphasizes that this innovation could also facilitate transactions between artificial intelligence agents and autonomous vehicles, in addition to optimizing micropayments via Lightning.
Tether Sets Up Permanent Base in El Salvador
Tether has recently announced its official move to El Salvador, a country that has become a pro-Bitcoin stronghold under the presidency of Nayib Bukele. The company is joining an environment where Bitcoin is still technically recognized as legal tender and where Lightning infrastructure is rapidly expanding. This decision reflects Tether’s intention to operate from a jurisdiction favorable to digital assets, shielded from growing regulatory pressures in Europe and the United States.
El Salvador, which launched the Lightning Network-based Chivo wallet in 2021, continues to refine its approach to Bitcoin adoption.
