In a surprising financial turn, Tether, the issuer of the USDT stablecoin, surpassed BlackRock, the world’s largest asset manager, in 2023 by generating a profit of $6.2 billion.

This achievement highlights a notable shift in the financial landscape, where cryptocurrency companies are increasingly outperforming traditional financial giants. BlackRock, which manages an astounding $10 trillion in assets, earned $5.5 billion during the same period​.

Tether’s success is closely tied to its dominance in the stablecoin market, where USDT holds a 75% market share with a capitalization of $119 billion. Stablecoins like USDT have become an attractive option for investors seeking stability amid the volatility of other cryptocurrencies. This stable market position allowed Tether to focus its investments on highly liquid assets such as U.S. Treasury bills, Bitcoin, and gold, all of which contributed to its record profits​.

Another key to Tether’s financial triumph is its lean operational structure. With fewer than 100 employees, Tether boasts an extraordinary profit-per-employee ratio, making it one of the most efficient organizations globally. Paolo Ardoino, CEO of Tether, has emphasized the firm’s ability to remain agile while managing a massive global operation​.

As Tether continues to grow, it remains a top 20 holder of U.S. Treasury bills, solidifying its influence not only in the crypto world but also in traditional finance. This development further signals the expanding role of stablecoins in the broader financial ecosystem.

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