In early 2024, Tether achieved remarkable profits, totaling $5.2 billion in just two quarters—$4.52 billion in Q1 and $1.3 billion in Q2. This success stemmed primarily from interest income on its reserves, particularly US Treasuries, rather than trading fees or USDt printing. By mid-2024, Tether held $97.6 billion in US government debt, becoming one of the largest Treasury holders globally. The stablecoin model involves users depositing fiat, allowing Tether to mint USDT while investing in low-risk, yield-generating assets. As of March 2025, Tether's Treasury exposure neared $120 billion, complemented by a diversified reserve strategy that includes gold and Bitcoin. Tether also generates revenue through collateralized loans and fees from institutional clients, amassing over $122 million weekly. Despite its profitability, Tether faces scrutiny over its reserve practices and compliance with regulations. As interest rates fluctuate, Tether's reliance on Treasuries poses risks, prompting a potential shift towards more volatile assets to maintain yield. Read more AI-generated news on: https://app.chaingpt.org/news

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