Maelstrom Data Analysis has Shown Below Tether, which issuing the stablecoin USDT has raked an astounding $6.2 billion net profit by 2023.
This figure is even more impressive because it represents 78% of Goldman Sachs earnings, and 72% for Morgan Stanley. These two global financial giants are known for their dominance.
Tether, despite having a staff of only 100, has outshone giants such as Goldman Sachs (which employs around 49,000 people) and Morgan Stanley (82,000).
Tether’s rising profitability is testament to the increasing influence and importance of cryptocurrency in the global finance system.
Stablecoins have disrupted the conventional financial norms and given investors new ways to generate wealth.
Tether, a crypto firm has developed the Tether stablecoin USDT. This stablecoin is intended to have a constant value because it is backed up by reserves of fiat currencies. Tether, originally known as Realcoin, was created in 2014 by Brock Pierce and Reeve Collins.
USDT was designed to be a bridge between fiat currency and the blockchain. The company offered USDT users transparency, stability and low fees. The Tether USDT stablecoin is fiat-collateralized, which means it’s backed up by fiat currencies like the US Dollar. Each USDT token is worth $1, and is backed with $1 of reserves.
Tether is available on many blockchain networks including Bitcoin, Ethereum EOS Tron Algorand and OMG Network. This allows investors to use it without any hassle to protect themselves against volatility in their cryptocurrency investments.
Tether Limited manages its reserves. It is owned by iFinex Inc. of the British Virgin Islands, who also owns Bitfinex, a cryptocurrency exchange. The connection between Tether Limited and Bitfinex raises concerns over the transparency and verifyability of Tether’s fiat reserves. This is due in part to previous controversies, legal issues and other factors.
Tether reserves were made up of corporate bonds and commercial papers, as well as secured loans. Tether is still the biggest cryptocurrency by trading volume despite these worries. It has 64% market share of stablecoins, and it surpassed Bitcoin to be the most traded cryptocurrency.