01 Feb 2024

Stablecoins is a lucrative business

Stablecoin issuer Tether reports record profits, emergency request to surveil U.S. miners, and the FTX exchange won't be restarting. In Trending Topics, we touch on the chances for U.S. spot Ether ETFs and the, so far, failed rotational play into Ether.
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Tether reports $2.9 billion in Q4 profits
Stablecoin issuer Tether reported record profits of $6.2 billion in 2023, of which $2.9 billion came in the fourth quarter. The record profits largely derive from higher returns on the assets backing Tether's stablecoin USDT.Most of USDT's backing is held in liquid and stable assets such as U.S. treasuries. As interest rates have come up, these holdings of treasuries and alike yield higher returns.Also, Tether has continuously invested portions of its profits in bitcoin along the way. A significant part of the 'excess' Q4 profits derives from returns on these bitcoin investments.Currently, more than 96 billion USDT reside on blockchain networks, which means Tethers' fully-backed reserves + asset accrual totals more than $100 billion – a substantial base to earn interest on!
Emergency request to surveil U.S. miners
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