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Circle’s USDC and Tether’s USDT are the two largest stablecoins in the world, with a combined market capitalization of over $210 billion. However, the two tokens vary significantly in size, with USDT making up approximately $150 billion of that total. From this dominant position, Tether has been able to grow to achieve truly incredible profits, reporting that it earned $13 billion in 2024. This is compared to a mere $156 million for Circle. A portion of this difference comes down to the differences in reserves for the tokens . Read more: Why is Tether 213% bigger than Circle but 8,000% more profitable? For example, Circle maintains far more cash available than Tether — approximately $5.8 billion compared to Tether’s $64 million. This suggests that Tether has access to credit to manage redemptions. Tether is also willing to include certain types of investment in its reserves that Circle avoids, including: Secured loans Corpo...

On one hand, the global economy is in the midst of a banking crisis. On the other, crypto assets have been thriving and attaining new 2023 highs. In fact, companies from the ecosystem are also expecting to churn out profits. USDT stablecoin issuer Tether is one such name. Recently, Tether ’s Technology Chief told CNBC that Tether could register about $700 million in profits in the first quarter of this year. That will make its total excess reserves surpass the $1 billion threshold. Here, it is worth recalling that the company registered the same $700 million in profit during the December quarter. Tether ’s reserves were boosted by the aforementioned profit. As Watcher Guru reported, Tether ’s consolidated total assets stood around $67.04 billion at that time, while its consolidated total liabilities were at least $66.08 billion. In all, it had a surplus reserve of at least $960 million. According to CNBC, Paolo Ardoino, Tether ’s chief technology officer, said the comp...

Towards the end of last week, Silvergate discontinued its 24/7 instant settlement exchange network, SEN. Notably, institutions that used the said platform to move funds to crypto currency exchanges. Right from Kraken to Gemini and Binance.US, a host of prominent names from space were the bank’s clients. A recent Analysis report from Kaiko pointed out how the said situation could be a boon for Stablecoins , for they could be used to fill the void created by Silvergate . SEN was notably one of the only fiat payment rails in the crypto industry. Without it, Kaiko noted, “liquidity could suffer.” Even though Signature Bank seems to be another banking alternative, stablecoins could step up. Elaborating on the same, the report highlighted, “Specifically, it will become harder to quickly deploy fiat capital via exchanges, with Signature Bank now one of the only banking alternatives. But of course, there is another widely-used on-ramp into crypto: s...