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Tether Made Way More Revenue Than Goldman Sachs in New Report

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By Christian Webster - - 5 Mins Read
Tether logo displayed on a smartphone screen
Photo | Shutterstock

Tether, the stablecoin issuer, has outshone Wall Street giant Goldman Sachs in revenue for the previous year's fourth quarter.

 

Tether's financial report reveals a staggering $2.85 billion in gains during this period, surpassing Goldman Sachs, which reported profits of $2.01 billion.

 

This unexpected outcome has sparked widespread interest and analysis within the financial community.

Crypto Market Surge

The impressive performance of Tether can be primarily attributed to the unprecedented surge in the cryptocurrency market.

 

Tether's fourth-quarter profits consisted of $1 billion from U.S. Treasury bills and a substantial $1.85 billion from holdings in Gold and Bitcoin.

 

This surge aligns with the heightened enthusiasm surrounding the spot Bitcoin exchange-traded fund (ETF) between October and December 2023. During this time, Bitcoin's value skyrocketed from around $27,000 to over $42,000.

 

The concurrent rise in Tether's USDT supply, from approximately 83 billion to nearly 92 billion tokens, further indicates the growing demand for Tether's fiat-backed stablecoin.

 

A noteworthy result of this surge is that it signals an increased interest from institutional investors entering the cryptocurrency market.

 

According to CryptoSlate's data, as of the latest update, Tether's USDT supply has reached $96.2 billion.

Tether Remarkable Year

Despite this significant achievement in the fourth quarter, Tether's overall profit for the year was reported at $6.2 billion.

 

While this is impressive, it falls short of Goldman Sachs's earnings of $8.52 billion.

 

However, Paolo Ardoino, Tether's CEO remains optimistic, emphasizing that the substantial profits showed the company's financial strength throughout the year.

 

"The substantial net profits generated not only in the last quarter of the year but throughout the year, amounting to $6.2 billion, showcases our financial strength," said Ardoino.

 

Chart showing the growth of US Treasuries and Cash and Cash Equivalent versus total outstanding Tether Tokens.
Chart indicating growth of US treasuries and cash and cash equivalent vs Tether's total outstanding tokens | Tether

 

Goldman Sachs is a globally known investment banking firm. By revenue, it is the second-largest bank in the world and is recognized by the Financial Stability Board as a systemically important financial institution.

Tether Excess Reserves Soar

One of the most remarkable outcomes of Tether's financial success is the high increase in its excess reserves. Tether's profits have enabled it to bolster its excess reserves to an impressive $5.4 billion.

 

Within this, $640 million has been allocated to various project investments, spanning sustainable energy, Bitcoin mining, AI infrastructure, and P2P communications. Notably, Tether does not categorize these investments as part of its reserves.

Paolo Ardoino shed light on these strategic investments, stating:

"Our investments in sustainable energy, Bitcoin mining, data, AI infrastructure, and P2P telecommunications technology illustrate our commitment to a more sustainable and inclusive financial future."

BDO Italia's Verification

To substantiate Tether's financial claims, BDO Italia, a global accounting firm conducting Tether's attestations, verified that the stablecoin's excess reserves covered its $4.8 billion in outstanding unsecured loans.

 

This verification demonstrates Tether's commitment to financial transparency and stability. It shows that the company's excess reserves mitigate any risks associated with outstanding loans.

 

As of December 31, 2023, Tether held assets worth an impressive $98.47 billion, while its liabilities amounted to $91.59 billion.

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