As 2025 begins, cryptocurrency giant Tether stands at a pivotal moment, backed by record profits and potential high-level support in Washington, despite ongoing scrutiny over its USDT stablecoin.
The company reported an impressive $5 billion in profits from its reserves during the first half of 2024. This financial success comes alongside news that Howard Lutnick, CEO of Cantor Fitzgerald and a noted Tether supporter, has been nominated as Secretary of Commerce by President-elect Donald Trump.
Lutnick's nomination could mark a turning point for Tether. His firm, Cantor Fitzgerald, manages billions in US Treasury bonds backing USDT and owns 5% of Tether. As a vocal advocate for stablecoins, Lutnick has described them as "fundamental for the US economy."
However, Tether continues to face regulatory challenges. The US Treasury Department has noted increased use of USDT by criminal organizations, particularly in Mexico, for purchasing fentanyl precursor chemicals. The company maintains it actively cooperates with law enforcement and has frozen approximately 1,800 cryptocurrency wallets linked to illegal activities.
Tether's financial strategy has evolved beyond traditional stablecoin operations. With over $84 billion in Treasury bills, the company has diversified its investments, including a $100 million stake in an Argentinian dairy producer and $775 million in Rumble, a right-wing-focused video platform.
In a notable expansion, Tether has entered trade financing, facilitating a $45 million crude oil transaction between major industry players using USDT. CEO Paolo Ardoino expects this business segment to grow in 2025 as companies seek alternatives to traditional dollar transactions.
The company now manages $137 billion in USDT tokens, cementing its position as the crypto industry's largest stablecoin issuer. While questions about its operations persist, Tether's combination of strong profits and potential political allies suggests a promising outlook for the year ahead.