Stablecoin issuer Tether reported a net profit of $2.5 billion for the third quarter of 2024, bringing its year-to-date profit to $7.7 billion as the market cap of its flagship digital currency, USDT, approaches $120 billion.

Approximately $1.3 billion of the profits stemmed from earnings on U.S. Treasury holdings, while an additional $1.1 billion resulted from the increased value of the company's gold reserve. Paolo Ardoino, CEO of Tether, mentioned that gold prices increased by about 15% during this quarter.

According to the latest quarterly attestation from the accounting firm BDO Italy, Tether's global asset reserve totals $125.5 billion against liabilities of $119.4 billion, resulting in over $6 billion in excess reserves backing its stablecoins.

Tether's investments include $105 billion in cash and cash equivalents, predominantly comprising $84.5 billion in U.S. Treasury bills. It also holds $5 billion in gold and $4.8 billion in Bitcoin (BTC).

In addition, Tether Investments, which oversees Tether's ventures in energy, mining, and artificial intelligence, showed a net equity value of $7.7 billion, rising from $6.2 billion in the previous quarter, reporting ownership of 7,100 BTC, valued at almost $500 million.

Tether's USDT serves as a pivotal element in the digital asset landscape, being the third-largest cryptocurrency by market capitalization and a primary liquidity source on exchanges, along with its increasing use as a payment method in emerging markets.

Recent reports suggested that Tether is under investigation by U.S. authorities concerning possible sanctions violations, claims that the company has robustly denied, emphasizing its commitment to compliance with U.S. regulations.