Tether’s Potential to Surpass Saudi Aramco as the World’s Most Profitable Company
According to Bitwise Chief Investment Officer Matt Hougan, Tether, the issuer of the popular stablecoin USDT, has the potential to become the most profitable company in the world. This prediction is based on the assumption that Tether will continue its explosive growth and achieve an asset base of $3 trillion, which would account for approximately 3% of the global money supply. Hougan’s analysis suggests that at current interest rates, Tether would generate massive profits, potentially surpassing Saudi Aramco’s record of $120 billion in 2024.
The ambitious evaluation projections for Tether initially attracted Hougan’s attention when the news broke that the stablecoin issuer had raised capital at a valuation of $500 billion. This would make Tether one of the most valuable startups in the world, alongside artificial intelligence pioneer OpenAI and aerospace manufacturer SpaceX. While the comparison may seem far-fetched, Hougan argues that it is less so when considering Tether’s market positioning and growth.
Tether’s Path to Record-Breaking Profitability
Tether’s CEO, Paolo Ardoino, expressed confidence in the company’s ability to maintain its dominance in the stablecoin market despite increasing competition. Ardoino highlighted the effects of current interest rates on Tether’s business model and profitability, stating that the company had achieved $12 billion in profit over the past two years. Even if interest rates were to fall to 2%, Ardoino estimated that Tether would still generate $2 billion in profit per year from its $100 billion in US Treasury bonds.
According to Defillama data, the overall market capitalization of stablecoins is currently $297 billion, with Tether’s USDT accounting for 58.65% of the total market share, valued at $174 billion. Tether is also the most profitable company in the crypto space, generating $652 million per month and $6.81 billion annually.
Institutional Adoption of Stablecoins
The projection that Tether can become the most profitable company in the world comes as institutional adoption of stablecoins accelerates across the financial sector. Major payment processors, including Stripe, MasterCard, and Visa, have introduced infrastructure that enables consumers to make payments using stablecoins via existing payment networks. Digital wallet providers, such as MetaMask, Kraken, and Crypto.com, now offer card services that support stablecoin transactions.
Traditional banks, including Citi and Bank of America, have planned to expand their digital wealth services, with some potentially introducing proprietary stablecoins in the future. As the institutional adoption of stablecoins continues to grow, Tether’s potential to become the most profitable company in the world becomes more plausible.
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