In a surprising turn of events, Tether, the issuer of the USDT stablecoin, generated more profit than global asset management giant BlackRock in 2023. While BlackRock, managing around $10 trillion in assets, earned $5.5 billion last year, Tether surpassed this figure with a staggering $6.2 billion in profits—outperforming the traditional finance heavyweight by $700 million.
Tether’s Dominance in the Stablecoin Market
Tether’s financial success is largely driven by the increasing adoption of its USDT stablecoin. In 2023, USDT reached a market cap of $119 billion, securing a dominant 75% share of the stablecoin market. This places Tether well ahead of competitors like Circle (the issuer of USDC) and even fintech giant PayPal. The company’s stronghold in the industry underscores the growing appeal of stablecoins, which are pegged 1:1 to fiat currencies like the US dollar, offering a more stable and secure option in the volatile crypto market.
Tether: A Major Player in U.S. Treasuries
The rise of stablecoins, particularly USDT, has not only reshaped the crypto landscape but has also positioned Tether as a significant player in traditional finance. According to Bernstein, Tether is now one of the top 20 holders of U.S. Treasury bills, further demonstrating its financial influence.
Tether’s $120 billion in assets is mainly concentrated in U.S. treasury bills, along with investments in Bitcoin and gold. This diversified asset base, combined with its streamlined operations, has contributed to its remarkable profitability.
Small Team, Big Impact
One of the most striking aspects of Tether’s success is the size of its workforce. With fewer than 100 employees, the company has achieved a higher profit per person than any other firm in history. Paolo Ardoino, Tether’s CEO, highlighted this efficiency, pointing to the relatively small team managing an extensive global operation. More than 300 million people use USDT worldwide, making it the most successful stablecoin product ever developed.
BlackRock vs. Tether: A New Financial Frontier
BlackRock, the world’s largest asset manager, has substantial holdings in publicly traded companies and is a leader in traditional finance. However, Tether’s profitability showcases how digital assets are reshaping financial dynamics. While BlackRock manages trillions in traditional investments, Tether’s success with USDT demonstrates the growing economic power of cryptocurrencies, especially stablecoins.
