Tether's Q1 attestation report reveals the stablecoin giant has shored up over 7.7 tons of physical Gold to back its issuance of XAU₮.

Stablecoin issuer Tether generated nearly $14 billion in profits in 2024. A report from Pirate Wires identifies Tether as the most highly profitable firm in the world, per employee, generating nearly $93 million in profit per employee in 2024.

Stablecoin issuers and firms providing liquidity to crypto exchanges typically face high operating costs due to the technology and personnel required. In comparison, firms in the U.S. involved in oil refining and processing generated an average profit of $56,788 per employee in 2024.

Issuers of stablecoins and crypto exchange firms also faced significant revenue declines in 2024 due to the broader crypto market downturn.

Stablecoin issuer Tether is known for its large Bitcoin and U.S. Treasury bill stash.

Rising profitability of Tether and larger volume of reserves could contribute to higher confidence from retail traders and institutional investors acquiring USDT. The firm recently unveiled plans to foray into Real World Asset tokenization (RWA) and stablecoins backed by other currencies (other than the USD) and physical assets like Gold.

Teater’s physical Gold stash is growing

The firm’s Q1 attestation report shows that the giant holds over 7.7 tons of physical Gold.

Source: Q1 attestation report

Data from Bitbo Treasuries reveals over 100,500 BTC holdings by Theter at the end of the first quarter.

Source: Bitbo Treasuries

Rising profitability of Tether and larger volume of reserves could contribute to higher confidence from retail traders and institutional investors acquiring USDT. The firm recently unveiled plans to foray into Real World Asset tokenization (RWA) and stablecoins backed by other currencies (other than the USD) and physical assets like Gold.

Tether co-founder says stablecoins help preserve US Dollar dominance

The US Dollar is currently the dominant fiat currency backing stablecoins circulated by Tether.

Co-founder Reeve Collins told members of the media that stablecoins are helping to preserve the U.S. Dollar’s role as a dominant fiat currency.

“The stablecoin definitely helps preserve the Dollar dominance, especially in the crypto space. The Dollar is kind of the reserve currency of crypto. But now there are other currencies coming into play. But more importantly, it’s not currencies. It’s other types of backing.”

The stablecoin giant’s co-founder believes assets used to back stablecoins other than the USDT may soon catch up by offering a higher yield to users.

Collins shared her thoughts on funds backed by higher-yield generating assets (relative to U.S. Treasury bills) like money market funds.