Why is Tether 213% bigger than Circle but 8,000% more profitable?
Circle wants to IPO, and its S1 filing details the staggering difference between the regulated, US-based stablecoin issuer and its offshore competitor, Tether. Despite their relatively similar sizes, the financials of the world’s two largest stablecoin issuers are miles apart. As of December 31, 2024, there were 137.4 billion circulating USDT and 43.9 billion circulating USDC. Despite USDC’s market capitalization being approximately one-third of USDT, their profitability diverges massively. Specifically, Tether reported a gross profit of $13 billion that year , while Circle reported just $156 million in net income. Specifically, Tether reported a gross profit of $13 billion that year, while Circle reported just $156 million in net income. In percentage terms, the market capitalization of USDT was just 213% bigger than USDC, yet its profit was roughly 8,000% bigger . It certainly begs the question of how Tether achieved its extraordinary gains. How come @circle h...
