Tether, issuer of the world’s most popular stablecoin, USDT, has just achieved a remarkable milestone – over $10 billion in profit over just nine months. This unprecedented surge in profitability has sparked discussion and raised concerns regarding transparency and regulation within the crypto market. Analyzing Tether’s latest quarterly report reveals a story of substantial gains driven by investments in U.S. Treasury bonds, precious metals, and Bitcoin. Tether’s record-breaking performance is fueled by its significant exposure to U.S. government bonds – reaching $135 billion. This has proven stable, benefiting from the current monetary policy environment. The company also boasts a diverse portfolio of investments including $12.8 billion in precious metals and $10 billion in Bitcoin. This strategy highlights Tether’s ambition to diversify beyond traditional financial instruments. However, despite these impressive results, Tether remains under scrutiny for its lack of full financial transparency. Instead of releasing comprehensive financial reports, the company publishes quarterly attestations prepared by BDO. This reliance on attestations instead of full reports has fueled concerns regarding independent verification and accounting accuracy. Further complicating matters is the question of regulatory oversight for a company registered in El Salvador and operating with vast reserves concentrated in U.S. sovereign assets. Tether’s dominance in stablecoins remains strong, as evidenced by the company’s announcement of over 500 million USDT users. However, recent data indicates that Circle’s USDC stablecoin is gaining ground in terms of on-chain activity and capitalization. This raises questions about Tether’s future standing in the rapidly evolving landscape of digital capital markets. As Tether moves closer to a quasi-systemic role, concerns regarding governance, transparency, and regulation will intensify. Questions linger regarding Tether’s ability to sustain its profitability without relying on favorable market conditions like those currently prevailing. Only time will tell how Tether adapts to the increasing demands for robust regulation in the world of crypto.