Bitwise Chief Investment Officer: Tether is expected to surpass Saudi Aramco to become the most profitable company in history

Bitwise Chief Investment Officer Matt Hougan's latest research report suggests that leading stablecoin issuer Tether is poised to surpass Saudi Aramco's profit record and become the most profitable company in history. While news of Tether seeking a $500 billion valuation has raised eyebrows, Hougan emphasized that this trajectory makes sense when viewed within the context of the vast currency markets it can access. Earlier this year, Tether CEO Paolo Ardoino announced that USDT had surpassed 400 million users worldwide, growing at a rate of 35 million wallets per quarter, with a focus on developing countries and strengthening the dollar's position. As of the second quarter, Tether held $127 billion in US Treasury bonds, making it one of the top 20 holders of US Treasuries, according to Treasury Department statistics. This is comparable to sovereign nations like the UAE and Germany, and second only to Saudi Arabia. Hougan noted that Tether's dominant adoption in non-Western countries could lead many emerging markets to shift from primarily using their own currencies to using USDT. In this scenario, Tether's assets under management could grow to trillions of dollars. He estimates that, at current interest rates, if it manages $3 trillion in assets, its profits would surpass Saudi Aramco's record $120 billion in 2024. The company, with fewer than 200 employees, is projected to generate approximately $13 billion in profits in 2024 and currently holds over 100,000 BTC (valued at $11.4 billion). In recent years, its capital deployment has expanded beyond stablecoins, actively investing in sectors such as artificial intelligence, telecommunications, data centers, energy infrastructure, and Bitcoin mining. Furthermore, the company recently launched USAT, a new US-regulated dollar stablecoin designed to serve US users and complement USDT's global reach.