Tether Expects $15 Billion Profit Surge in 2025
Tether, the company behind the world’s largest stablecoin USDT, is forecasting a staggering $15 billion profit for 2025. This impressive projection cements Tether’s dominance atop the rapidly expanding stablecoin sector, driven by relentless investor enthusiasm and the growing adoption of crypto’s answer to the US dollar.
The news was first reported by Cointelegraph this week, highlighting Tether’s continued surge in profitability despite persistent scrutiny from regulators and questions around its reserves.
As a reminder, Tether issues USDT, a stablecoin pegged to the US dollar, which has become essential for trading, DeFi, and cross-border payments in the crypto economy. According to CoinGecko, more than $110 billion in Tether is circulating globally.
How Does Tether Make So Much Money?
Tether’s primary revenue comes from earning interest on the reserves backing the USDT in circulation. For a breakdown of stablecoin business models, check out Investopedia’s guide to stablecoins. With US interest rates remaining high, Tether’s profits have soared—raising eyebrows given recent volatility and bank crises.
Crypto’s Growing Clout—and Government Accountability
As investors flock to digital dollars, governments worldwide are paying closer attention. In the US, the Federal Reserve and Securities and Exchange Commission have both issued warnings about the systemic risk posed by privately issued stablecoins like Tether. Some countries, like the UK, have proposed comprehensive crypto regulations (read more on the Bank of England’s stablecoin policy), while others remain wary of the sector’s breakneck growth.
Why Should Young People Care?
With nearly $15 billion in profits up for grabs, the influence that companies like Tether wield is immense. The rise of digital currencies and the debate over financial privacy and government oversight is quickly becoming a political flashpoint.
For many in Gen Z and Millennials—who already face a banking system that isn’t always inclusive—stablecoins offer a path to financial autonomy and global payments. But rapid profit-making by private firms, with little oversight, raises crucial questions: Who ensures these titans play by the rules? How do we stop financial innovation from being monopolized by big corporate interests? And what role will youth activists play in demanding consumer protection and economic fairness?
For the next election cycle, expect digital currency policy—and the fight for a truly open and democratized financial system—to become a hot topic. Because the future of money isn’t just about profit margins. It’s about power, fairness, and who gets to shape the rules of finance for the next generation.
