What if the richest people in crypto… don’t even touch coins?
No trading. No mining. No hype.
They just collect interest. Quietly. Relentlessly.
While everyone else chases the next pump, Tether and Circle are turning boring into billions.
You hand them a dollar, they give you a token… and start earning interest on your money.
It’s like running the exchange… instead of betting on it.
And once you understand how they really make money,
you’ll start asking:
Who’s holding the coin… and who’s holding the power?
Table of Contents
1. The U.S. Senate passed the GENIUS Act—covered in the last post.
2. That post explained the Act and mentioned stablecoin issuers like Tether and Circle.
3. One subscriber asked: “How do these companies actually make money?” Let’s unpack that.
“Mint to Dollars: The Simple Flow”
4. Tether and Circle run similarly—so let’s follow Tether’s lead.
5. Deposit $1 into Tether’s account and get 1 USDT.
6. Spending USDT or sending it abroad doesn’t cost extra.
7. Fees kick in only when you swap USDT back to dollars.
8. Return 1 USDT, it gets burned, and $1 hits your bank.
9. Tether charges a 1% fee on that conversion.
10. Sounds small—but that’s just the surface.
“Reserve Interest: The Real Riches”
11. Most of Tether’s dollars aren’t sitting idle—they’re invested.
12. About 66% goes into short-term U.S. Treasuries; Circle puts nearly 89% into similar safe bonds.
13. Interest from those beats exchange fees hands-down.
14. Tether also uses up to 5% in money-market funds, 0.1% in cash, and 18% in “other assets.”
15. U.S. regulators are eyeing that 18%—it’s not fully transparent.
16. In 2022, auditors flagged that some came from Chinese real-estate commercial paper.
17. That could involve high-risk firms, including names like Evergrande or Country Garden, according to past reports.
18. Regulators want full audits, but Tether resists by claiming it’s not U.S.-based.
19. Circle’s approach is cleaner: 89% ultra-short Treasuries (avg ~12 days), 11% cash.
20. They did park ~10% of reserves at SVB in 2023, then bounced back after its collapse.
21. Every month they audit and confirm each USDC is backed by $1.
“Earnings Explosion: How Big Is It?”
22. Now public in the U.S., Circle’s finances are fully transparent.
23. Fees? Minor players. The real haul is interest from huge reserves.
24. Tether netted $13 billion in profit for 2024.
25. And all with just ~80 employees!
26. Interest beats fees—hands down.
27. Their earnings are tied to reserve size and Treasury yields.
“Snapshot: U.S. & Global Scene”
28. Tether holds over $113 billion in U.S. Treasuries—among the top holders worldwide.
29. Circle’s USDC has around $60 billion in circulation as of mid‑2025.
30. Q1 2025: Circle made ~$578 million in revenue and ~$65 million in profit.
31. In 2024, it pulled in ~$1.7 billion—99% from interest.
32. Circle’s IPO soared—from $31 to about $100 per share—valuing it near $22 billion.
33. That reflects investor confidence in stablecoin growth.
“Why You Should Care”
34. These firms earn more from investing reserves than fees.
35. Their profitability links to how fast their reserves grow and interest rates rise.
36. With GENIUS Act clarity, Circle shines—Tether faces more scrutiny.
37. Bottom line: stablecoin companies are investment powerhouses in disguise.
38. Smooth, simple, and safe—this is how the digital-dollar engine really runs.
“Bigger Bags, Better Yields: The Silent Success Formula”
Forget flashy tokens and rollercoaster charts.
Stablecoin giants win the quiet game. Every dollar you deposit joins their financial engine, quietly compounding returns.
Here’s their golden rule:
More dollars in = more profit out.
Even if interest rates dip, the sheer scale of money they manage can still send profits soaring.
They’re not riding crypto waves—they’re building dams that control the flow.
While others play the market, these companies shape the system.
That’s not luck. That’s leverage.
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