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TETHER

Netfigo Verdict
on Tether

Tether might be the most profitable company per employee in the history of capitalism. Fewer than 100 people manage $110 billion in stablecoin circulation and generated $6.2 billion in profit in the first half of 2024 alone. The business model is deceptively simple: hold dollars (mostly US Treasuries), issue digital dollars (USDT), and keep the interest. The controversy: Tether has never completed a full audit, was fined $41 million for misrepresenting reserves, and operates from the British Virgin Islands. Despite this, USDT is the most-traded asset in all of crypto — more volume than Bitcoin. The crypto world runs on Tether. Whether that foundation is solid or a house of cards is the $110 billion question.

Founded

2014

HQ

British Virgin Islands

Total Raised

Self-funded (no traditional VC rounds)

Founder

Brock Pierce, Reeve Collins, Craig Sellars

Status

Private (massively profitable, $110B+ in USDT circulation)

Website

tether.to

THE ORIGIN STORY

Tether was created in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars (though the current CEO is Paolo Ardoino and the real power is CTO and de facto leader Jean-Louis van der Velde and parent company iFinex, which also runs Bitfinex exchange). The idea: create a digital token pegged to the US dollar that could move between crypto exchanges without touching the traditional banking system.

Early crypto traders needed a way to park money between trades without converting back to fiat. USDT became that parking spot.

It grew from a niche exchange tool to the most important piece of infrastructure in all of crypto.

WHAT THEY ACTUALLY DO

Tether issues USDT — the most widely used stablecoin in the world with over $110 billion in circulation. Each USDT is supposedly backed 1:1 by reserves (US Treasury bonds, cash, and other assets).

Tether makes money from the yield on those reserves — with $110B+ invested primarily in US Treasuries, the company earns billions per year in interest. Tether reported $6.2 billion in profit in the first half of 2024 alone — making it more profitable than most banks on earth.

The company has fewer than 100 employees.

THE PRODUCTS

USDT (Tether stablecoin — on Ethereum, Tron, Solana, and 10+ blockchains), Tether Gold (XAUT — gold-backed token), Tether Investments (venture arm)

HOW THEY GREW

Become the default digital dollar for the world. Tether is expanding beyond crypto trading into emerging market payments, remittances, and savings.

In countries with unstable currencies (Turkey, Argentina, Nigeria), people use USDT as a stable store of value. Tether is also investing in AI, Bitcoin mining, and other ventures with its enormous profits.

THE HARD PART

Trust and transparency. Tether has been questioned about its reserves for years.

The company has never completed a full independent audit — only "attestations" from accounting firms. In 2021, Tether paid $41 million to settle charges with the CFTC for misrepresenting its reserves.

Despite this, USDT continues to grow because the crypto ecosystem depends on it. Tether is simultaneously the most important and most controversial company in crypto.

MONEY TRAIL

Self-funded

2014 · Led by

$0 raised

Revenue

2024 · Led by

$6.2B raised

WHO BACKED THEM

No traditional VC investors — self-funded and profitable from inception

Head-to-Head

Compare Tether vs another company.