Tether, the company behind the USDT stablecoin, is expecting to make $700 million profit in Q1 as its main rival faced difficulties amid banking drama in the US.
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Tether CTO, Paolo Ardoino, told CNBC in an interview the company is on track to get over $1.6 billion in excess reserves by the end of March. The money will stay in Tether as the company wants to "further capitalize the stablecoin," Ardoino added.
Tether makes money in a few ways. One includes charging fees for withdrawing over $1,000 in USDT (with a minimum withdrawal requirement amount of $100,000). The other includes investments in tokens, precious metals and from issuing loans to other institutions, the report notes. As of press time, USDT's market capitalization is set at $78.5 billion, up 12.3% since April 24.
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