What Factors Contribute to Tether’s Profitability, and Is Its Longevity Assured?

Tether seems to be on an unstoppable trajectory, with the leading stablecoin issuer projected to generate approximately $15 billion this year.

This is an astonishing amount. It translates to $41 million daily, $1.7 million hourly, $28,538 per minute, and $475 every second — and optimism is on the rise.

Matt Hougan, the chief investment officer at Bitwise, recently forecasted that Tether could emerge as the most profitable company globally, surpassing Saudi Aramco in the process.

This prediction is predicated on the expectation that the cryptocurrency firm will continue to expand at an extraordinary pace. Projections indicate that if Tether were to manage $3 trillion in assets in the future, the revenue generated from interest rates would exceed the $120 billion in annual profits that the oil giant reported last year.

However, significant questions remain. Is Tether’s growth sustainable? What accounts for the high profitability of this business? And how does it intend to utilize all this capital?

Tether, unstoppable tech for a stable society pic.twitter.com/n5umvQ2yS9

— Paolo Ardoino (@paoloardoino) October 27, 2025

How Tether Generates Revenue

Tether issues the USDT stablecoin, which is pegged to the US dollar on a one-to-one basis. It ranks as the third-largest digital asset globally, boasting a market capitalization of $183.2 billion — a 50% increase compared to the same period last year.

The company asserts that each unit of USDT is supported by low-risk assets that yield returns — including US Treasury bills, money market funds, and cash equivalents. The rise in interest rates during the coronavirus pandemic has made this particularly lucrative.

While much attention is directed towards companies like MicroStrategy and Metaplanet, Tether is also a notable holder of Bitcoin. As reported by BitcoinTreasuries.net, the private firm possesses 87,475 BTC in reserve, valued at nearly $10 billion at the current time.

Tether’s CEO, Paolo Ardoino, has characterized the company’s profitability as “very rare” — and if the figures are accurate, he would be correct. Since it is not publicly traded, verifying these numbers is challenging.

Despite having ample cash reserves, recent reports indicate that Tether is looking to raise $20 billion for a 3% equity stake. This would result in a valuation of around $500 billion — surpassing Netflix and Samsung, and nearing traditional financial institutions like Mastercard.

What Is Tether Investing Its Profits In?

In addition to Bitcoin, a diverse investment portfolio is beginning to take shape. Tether has acquired a stake in the Italian football club Juventus, becoming its second-largest shareholder, with Ardoino expressing a desire to eventually own the team outright.

Tether has also ventured into Bitcoin mining startups and blockchain analytics through an investment in Crystal Intelligence. Separately, Ardoino mentioned that a potential fundraising effort “from a selected group” of prominent investors could facilitate the company’s expansion into various sectors, including “AI, commodity trading, energy, communications, and media.”

Is Tether’s Profitability Sustainable?

This is the $15 billion question.

Currently, Tether holds the position of the leading player in the stablecoin market — particularly in emerging economies seeking access to digital dollars.

However, USDT is not available in the European Union due to non-compliance with the trading bloc’s Markets in Cryptoassets Regulation, commonly referred to as MiCA. This exclusion affects a population of 450 million individuals.

Tether is also preparing to introduce a distinct stablecoin tailored for the US market. Dubbed USAT, this digital asset aims to adhere to American regulations.

Looking forward, one of the primary threats to the company’s ongoing profitability stems from heightened competition among other stablecoin issuers. Presently, its closest competitor is Circle, but USDC has a significantly smaller market capitalization of $76 billion. Following the GENIUS Act, the real challenge may arise from traditional financial institutions launching their own stablecoins. As reported by Cryptonews earlier this month, nine Wall Street banking giants are collaborating to develop a jointly backed stablecoin focused on G7 currencies.

Additionally, it is important to consider the significant issue at hand: the Federal Reserve is positioning itself to reduce interest rates more frequently — with Donald Trump exerting pressure on Fed chair Jerome Powell. Over time, this will diminish the returns that Tether receives on the funds backing the USDT in circulation. Lower yields imply that the company’s profits may only grow if Tether’s market capitalization continues to expand.

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