Morning Minute: Tether Prints $10 Billion in Profit

Core Insights - Tether reported a profit of $1.1 billion for Q3 2025, bringing its year-to-date total to approximately $10 billion, surpassing major financial institutions like Goldman Sachs and Coinbase [2][4] - The majority of Tether's profits stem from interest income on U.S. Treasuries, with reserves totaling $91 billion, exceeding the reserves of countries such as Brazil and Canada [2][6] - Tether is diversifying its investments into Bitcoin mining and AI infrastructure, indicating a strategic shift beyond traditional dollar-backed reserves [3][4] Financial Performance - Tether's profit for Q3 2025 was $1.1 billion, contributing to a total profit of around $10 billion for the year [2] - The company earns approximately $25–30 million per day from current Treasury rates, highlighting its significant cash flow [6] Market Position - Tether's USDT supply has surpassed 122 billion, with nearly 70% issued on the Tron network and about 18% on Ethereum [3] - Tether's profitability positions it as one of the most profitable companies globally, potentially leading the industry on a per-employee basis [4] Strategic Initiatives - The company is expanding its investment portfolio to include Bitcoin mining and AI infrastructure, reflecting a strategy to diversify revenue streams [3][4] - Tether's growth may influence demand for related protocols and tokens, such as XPL [4] Regulatory Considerations - Tether's substantial outstanding USDT, exceeding $120 billion, raises concerns about its critical role in global financial infrastructure and potential regulatory scrutiny [6] - The company's ability to generate significant profits from U.S. debt without oversight may attract increased attention from regulators [6]