in the world nestled just between Mexico and Thailand. That in and of itself is pretty remarkable.
Second, the amount of assets Tether shows in its attestation report exceeds $86 billion which is a few billion higher than USDT’s market capitalization right now. It is worth mentioning that $2.4 billion of that is “Other Investments,” which could literally be anything. In any event, assets exceed liabilities for Tether which means it’s running an equity surplus.
Tether’s profitability makes sense in the context of the amount of Treasuries it holds. Interest rates have gone up a lot over the last year and Tether’s business clearly benefits from that. One-month Treasuries yield 5.378% right now, USDT yields nothing, Tether collects the difference. If you hold billions of dollars worth of Treasuries then you’re sitting on a cash cow.