Tether’s balance sheet and operations are increasingly resembling those of a private central bank, fueling debate about its true role in the crypto economy. Key takeaways include: Tether operates a Treasury- and repo-heavy balance sheet with more than $6.8 billion in excess reserves, generating over $10 billion in profit through high-interest environment. This has led to actions like freezing sanctioned addresses and allocating up to 15% of profits to Bitcoin. While not a sovereign entity, Tether’s influence on dollar liquidity remains substantial, prompting comparisons to central banks. This raises questions about regulatory oversight and the long-term implications of these practices for the stability of the crypto market. The article dives deeper into how Tether exercises this unique control by managing its reserves like a fixed-income portfolio, earning interest from US Treasurys and redefining its operational perimeter.