Tether CEO: Tether's profit margin is as high as 99%

On September 17th, Tether CEO Paolo Ardoino posted a striking financial statistic on social media: "Tether's profit margin is a staggering 99%." This statement quickly garnered widespread attention in the cryptocurrency community.

To date, the market capitalization of Tether's stablecoin, USDT, has reached $170.86 billion, maintaining its position at the top of the global stablecoin market. Such a high profit margin is rare in both the crypto industry and traditional finance, further highlighting the strong profitability of Tether's business model.

Analysts believe that Tether's astonishing profit margin is primarily due to the interest income generated by its core business—issuing and redeeming the USDT stablecoin. The company invests its reserves primarily in low-risk, highly liquid assets such as short-term U.S. Treasury bonds, with interest income comprising the vast majority of its profits. Despite long-standing regulatory pressure and market questions about the transparency of its reserves, Tether has demonstrated continued financial resilience and market dominance.

Paolo Ardoino's disclosure is also seen as a response to external doubts, showing the company's confidence in its financial health and operational efficiency.