Critics Silenced as Tether’s Annual Profit Skyrockets to $6.2 Billion
Blockchain technology, often criticized for its speculative nature, is changing the narrative with the remarkable success of Tether. Anthony Pompliano, a renowned trader and entrepreneur, recently debunked these criticisms and highlighted Tether as a prime example of blockchain’s real-world impact.
Pompliano countered skeptics by pointing out Bitcoin’s staggering $850 billion valuation, with $600 billion held by long-term investors. This demonstrates a strong belief in digital assets, surpassing traditional commodities like Gold. Tether, in particular, has emerged as a key example, proving that stablecoins have practical value beyond speculation.
In a recent revelation, Pompliano highlighted Tether’s strength by revealing its tokenization of nearly $100 billion across various fiat currencies on different blockchains. Remarkably, Tether is the 16th largest holder of US Treasury bonds, solidifying its role in the financial world. Despite facing criticism in an unregulated framework, Tether’s success positions it as a crucial player in the US financial landscape.
Critics of the new digital financial system often claim that blockchain technology has not created any real products. However, Tether’s success challenges this view, as it has become a profitable business with tangible results.
CEO Paolo Ardoino recently shared Tether’s impressive fourth-quarter report, which showcased a substantial $2.85 billion profit. The report also highlighted a robust portfolio of gold and bitcoin holdings. Tether’s total profit for 2023 reached an astounding $6.2 billion, demonstrating its remarkable journey.
In just 90 days, Tether outpaced traditional financial giants, boasting an annual run rate of $11.4 billion. This even surpassed the profits of Goldman Sachs in the last quarter, as emphasized by Matt Hogan, Bitwise CIO. Ryan Selkis, CEO of Messari, added that Tether now accounts for 10% of JP Morgan’s net profit with significantly fewer employees.
Pompliano highlighted Tether’s unique approach of holding reserves in diverse investments for availability and protection. With excess equity of $5.4 billion, Tether surpasses any remaining secured loans. Additionally, Tether’s profit per employee exceeds $100 million, positioning it as one of the most lucrative businesses globally.
The success of stablecoins like Tether and USDC on the global stage is undeniable, offering quick and cost-effective value transfers. Tether’s consistent growth not only defies skeptics but also showcases the importance of blockchain technology today.