Tether Evolution: From Controversy to Dominance in 2025
Tether, the world’s largest stablecoin issuer, has entered 2025 with renewed vigor and influence, dispelling some of the controversies that dogged its past. The company’s journey from skepticism to financial powerhouses is marked by strategic alliances, record-breaking profits, and groundbreaking ventures into new industries.
Tether’s Financial Fortunes in 2024
Tether ended the first half of 2024 with $5 billion in profits derived largely from its US Treasury reserves. With over $84 billion in low-risk Treasury bills, Tether has fortified its position as a financial giant. These earnings stem from yields on government bonds and service fees paid by customers redeeming USDT for cash.
However, Tether’s investments are not limited to safe assets. The company has explored unconventional avenues, including a $100 million stake in an Argentinian dairy producer, $200 million in brain-computer interface technology, and a whopping $775 million investment in Rumble, a video platform popular with right-wing users.
Howard Lutnick: Tether’s Ally in Washington
A key development in Tether’s trajectory is its potential ally in the U.S. government, Howard Lutnick. Recently nominated by President-elect Donald Trump as Secretary of Commerce, Lutnick is a crypto enthusiast and CEO of Cantor Fitzgerald, a firm managing billions in US Treasury bonds and holding a 5% stake in Tether.
Lutnick has championed stablecoins as critical to the U.S. economy, positioning Tether favorably within the political landscape. If confirmed by the Senate, Lutnick’s role could significantly influence crypto policy and U.S. trade relations, benefiting Tether’s global operations.
Addressing Controversies and Criminal Links
Despite its success, Tether remains under scrutiny. Reports from the U.S. Treasury Department highlighted the use of USDT in transactions by Mexican criminal organizations for fentanyl precursors. Additionally, Venezuela reportedly used USDT to circumvent U.S. sanctions on its oil sector.
Tether CEO Paolo Ardoino has consistently denied wrongdoing, emphasizing the company’s cooperation with law enforcement agencies. Since its inception in 2014, Tether has frozen 1,800 cryptocurrency wallets tied to illicit activities, demonstrating its commitment to combating financial crime.
Innovative Trade Financing with USDT
Tether’s latest venture into trade financing marks a pivotal moment in its evolution. In November 2024, the company facilitated a $45 million crude oil transaction between a commodity trader and a major oil company using USDT. This groundbreaking deal showcases the potential for cryptocurrencies to revolutionize global trade.
Ardoino expects trade financing through USDT to gain momentum in 2025, signaling a shift toward broader adoption of stablecoins in traditional industries.
The Road Ahead
With its robust financial performance, influential political connections, and pioneering initiatives, Tether is shaping the future of the stablecoin market. As the company continues to innovate and expand, its impact on the global financial system is becoming increasingly profound.
