Bitwise CIO: Tether Could Beat Saudi Aramco’s $120B Profit

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  Bitwise CIO sees Tether overtaking Saudi Aramco’s $120B profit.
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  Tether’s revenue surges from USDT-backed assets.
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  Stablecoin adoption fuels long-term profitability.

In a surprising and bold statement, Bitwise CIO Matt Hougan claimed that Tether could one day surpass Saudi Aramco’s $120 billion annual profit, making it the most profitable company in history. This prediction shines a spotlight on the massive, yet often underappreciated, revenue engine powering the world’s largest stablecoin issuer.

Tether, through its popular USDT stablecoin, holds tens of billions of dollars in reserve assets—mostly in short-term U.S. government debt. With interest rates currently high and global demand for stablecoins booming, Tether has been raking in billions in profits simply by managing these reserves.

Why Tether’s Profit Machine Keeps Growing

The core of Tether’s profit model lies in its enormous holdings of U.S. Treasury bills and other interest-bearing instruments. As the crypto ecosystem continues to expand, and more users adopt USDT for trading, remittances, and decentralized finance (DeFi), Tether’s balance sheet keeps growing.

In the first half of 2024 alone, Tether generated over $4.5 billion in net profit—putting it on track to potentially rival traditional oil giants like Saudi Aramco if conditions remain favorable. Unlike tech companies or industrial firms, Tether doesn’t need to sell a product—it profits from simply holding dollars.

This efficient, low-overhead model allows for high scalability with minimal expenses, especially as crypto adoption accelerates worldwide.

Can Tether Maintain This Trajectory?

While Tether’s profitability is impressive, it’s not without risks. Regulatory uncertainty, questions around auditing and reserve transparency, and increased competition from other stablecoins like USDC and new CBDCs could affect its future.

Still, Bitwise CIO’s confidence in Tether’s long-term potential speaks volumes. If the company maintains its market dominance and adapts to global financial regulation, it might just break the corporate profit record once thought unmatchable.