SS #45 - Tether Hits $10B Profit

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Good morning, and welcome to November. As the year-end approaches, we're taking stock of a stablecoin market that continues to deliver unexpected growth and record-breaking performance.

The world's largest stablecoin issuer, Tether, reported a stellar year, with year-to-date profits exceeding $10B as of Q3 2025. This financial performance was primarily driven by two factors: the issuance of an additional $17B in USDT and lucrative returns from its significant reserve holdings, which include approximately $135B in US Treasuries.

Separately, the on-chain activity for stablecoins saw a massive surge on the Ethereum network. The total monthly stablecoin volume on Ethereum hit a record $2.8T in October, signaling a strong desire among traders to seek yield opportunities despite the broader market slowdown.

We look forward to ensuring Stablescope readers always receive the latest, most impactful updates on the stablecoin industry.

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In Today's Edition:

• Headline: Tether Hits $10B Profit

• Quick Bites: Monthly Ethereum Stablecoin Volume Hits Record $2.8T in October

• Yield of the Week: 117.74% APY on Contango

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HEADLINE

Tether Hits $10B Profit

State of play: Tether, the world's largest stablecoin issuer, reported year-to-date profits exceeding $10B as of Q3 2025, driven by the issuance of an additional $17B in USDT and high-yield investments in $135B of US Treasuries.

• Tether's year-to-date profit has surpassed $10B (implying Q3 profits of at least $4.3B), underscoring its extremely high-margin business model, largely derived from interest on its vast Treasury holdings.

• The company issued $17B in new USDT in Q3, demonstrating surging global demand, yet it faces growing competition as JPMorgan notes rival USDC is outpacing USDT in on-chain growth and market cap increase.

• Tether is reportedly seeking to raise up to $20B at a colossal $50B valuation, signaling a potential move towards attracting large institutional capital and further expansion outside its core stablecoin business.

What’s Next: Tether will accelerate its push for compliance by launching its planned US-regulated USAT stablecoin to compete for institutional capital, while simultaneously channeling its massive profits into strategic non-crypto investments to diversify its revenue streams and justify its high private valuation.

Why it Matters: Tether's financial scale is now one of the world's largest holders of US Treasuries, elevates it from a crypto player to a quasi-systemic force in global finance, compelling regulators and central banks to address the growing influence of non-bank entities on core financial markets.

Our Take: Tether's success solidifies the arbitrage opportunity inherent in stablecoin reserves during high-interest-rate environments; investors should look for opportunities in the high-liquidity USDT ecosystem (exchange trading, emerging markets) and monitor Tether's new ventures as indirect ways to gain exposure to the firm’s exceptional capital base.

QUICK BITES

• Standard Money raises $8M.

• Western Union files ‘WUUSD’ trademark.

• Ripio launches Argentine peso stablecoin.

• Jeremy Allaire calls Arc ‘an economic OS for the internet’.

• Monthly Ethereum stablecoin volume hits record $2.8T in October.

• Stream Finance halts withdrawals and deposits after $93M loss disclosed.

• JPMorgan says Circle's USDC stablecoin outpaces Tether's USDT in onchain growth.

• New York judge grants relief to Multichain liquidators, extending freeze on stolen USDC.

• Standard Chartered CEO sees Hong Kong stablecoin as pivotal for international trade settlement.

• Stablecoin issuers dominate crypto revenue, capturing up to 75% of daily protocol earnings.

YIELD OF THE WEEK

Size All High-Rated: 57.10% APY

• Size operates as a DeFi marketplace that offers fixed-rate lending for any maturity, utilizing a Term Structure Order Book for continuous and efficient pricing.

• The Size Earn feature allows depositors to potentially boost their yield by earning a variable rate until their funds are matched with fixed-rate borrowers, aiming for a higher overall rate in the long term.

• The platform's operations are curated by Endeavor, an entity specializing in risk management and term structure pricing, bringing expertise from traditional finance, risk assessment, and machine learning.

IPOR yoUSD Looper: 16.71% APY

• The yoUSD Looper vault offers users leveraged exposure to the yoUSD asset, which is designed to maximize dollar-denominated yield by continuously reallocating assets across various chains and protocols based on risk-adjusted returns.

• All of the capital allocation within the vault is specifically directed toward the Morpho yoUSD/USDC market.

• In addition to the base yield, the vault also provides depositors with supplementary YO and IPOR rewards (points).

Contango USDC/USDT on Euler: 17.51%-117.74% APY

• Contango functions as a platform enabling users to deposit any asset in order to gain leveraged exposure (up to 13.8x) to the USDC/USDT market on the Euler protocol.

• Users engaging with the platform are granted Contango points as an additional incentive for their activity.

• A service fee is applied to any changes in position size made through the Contango user interface, with the fee amount varying based on whether the underlying instrument is classified as correlated or non-correlated, and discounts are available based on the user's XP tier.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.