Tether

Tether is a stable coin that seems impossibly simple. For every dollar held in a Tether account, the company maintains $1 in bank reserves. Tether became the most profitable company by employee count. In 2023, with under 100 employees, the company earned $5.2 billion in profit. Tether holds roughly $70 billion in customer reserves across money market funds and short-term treasury bills, earning 5% annual interest. $70 billion at 5% generates $3.5 billion annually. Tether captures most of this spread by monetizing the float, collecting interest on dormant capital. Crypto traders faced a real problem. Hold dollars without exiting the crypto ecosystem.