Tether · U.S. Treasury · The Block
Tether’s third-party reserve posts have shown multi-billion-dollar net profits
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Yes, but fees are not the main driver of revenue.
Key facts
- A simple example: if Tether holds $100 billion in Treasury bills yielding 4%, those reserves generate roughly $4 billion in annual interest before expenses
- Tether’s third-party reserve reports have shown multi-billion-dollar net profits, with 2024 figures reported above $13 billion and 2025 above $10 billion
- Reserve portfolio size scales with USDT supply, which has grown from a few billion dollars in 2020 to roughly $186 billion by the end of 2025
- Yield depends on short-term U.S. interest rates, which rose sharply from near zero in 2022 to over 5% by 2023 before beginning to ease
Summary
Tether primarily makes money by earning interest on the reserve assets that back USDT, the world’s largest stablecoin. The model is simple. Tether is the company that issues USDT, a stablecoin pegged to the U.S. dollar. Tether issues USDT across multiple blockchains, including Ethereum, Tron, and Solana, with the same dollar peg on each. In January 2026, the company also launched USAT, a separate U.S.-regulated stablecoin issued by Anchorage Digital Bank with Cantor Fitzgerald as reserve custodian.