In what is a testament to its dominance, stablecoin issuer Tether generated more profit than BlackRock in 2023. Indeed, the $10 trillion asset manager earned $5.5 billion last year. Alternatively, the USDT issuer generated a remarkable $6.2 billion. The output shows that the crypto company edged out the traditional finance giant by $700 million last year.
Tether recently saw its USDT stablecoin reach a market cap of $119 billion. Moreover, the asset dominates an impressive 75% of the market share, easily leading the sector ahead of firms like Cirlce and even PayPal. The performance shows the growing interest in stablecoins, and Tether’s position atop the growing industry.
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Tether Out Earned BlackRock by $700 Million in 2023
The growth of stablecoins has been one of the focal points of crypto in recent years. Considered a far safer option than traditional tokens, these assets are typically pegged 1:1 to traditional currencies like the US dollar. Moreover, they have surged to become a top 20 largest US Treasury holder, according to Bernstein.
That growth has been a key benefit to one entity in particular. Indeed, stablecoin issuer Tether had done so well last year, that it actually generated more profit than BlackRock in 2023. That’s right, the USDT issuer outperformed the world’s leading investment and advisory firm.
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According to the Wall Street Journal, Tether has $120 billion in assets. That is focused on US treasury bills, Bitcoin, and gold. Altenraitlvey, BlackRock is a $10 trillion asset manager who has positions in some of the top publicly traded companies on the planet.
The reason for the profit is due to the relatively small size of Tether. CEO Paolo Ardoino notes that the firm currently has less than 100 employees. Therefore, it has earned more profit per person than any company ever has. With more than 300 million people using USDT, it has succeeded in developing the most successful stablecoin product ever created.