FILE PHOTO: Tether logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
PORTLAND: The world’s biggest stablecoin issuer, Tether Holdings Ltd, is on track to close the year with more than US$10bil in net profits, chief executive officer Paolo Ardoino says in an interview.
As bitcoin and many other cryptocurrencies rallied to new all-time highs, demand for Tether’s USDT stablecoin – pegged to the dollar – has skyrocketed.
The token added nearly US$50bil to its market capitalisation this year, and it now stands at more than US$140bil, according to data tracker CoinMarketCap.
Much of Tether’s earnings come from investing its reserves backing stablecoins, including USDT, into US Treasuries, gold and other securities.
This year, Tether invested more than half of its net profits, Ardoino said.
Last Friday, the company announced it agreed to invest US$775mil into video-sharing network Rumble, including a primary commitment of US$250mil in cash, with Tether also supporting Rumble’s tender offer for up to 70 million shares at US$7.50 per share.
“Next year we plan to deploy at least half of the profits in investments” including in artificial intelligenca (AI), Ardoino said.
“Our investment is just at the beginning.”
In the first quarter, Tether is planning to launch its own AI platform, making it possible for people to interact with AI using their cell phones, he said. — Bloomberg
