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Bitwise CIO Matt Hougan says Tether could rival Saudi Aramco in profitability.
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Tether may manage trillions in assets if adoption accelerates in emerging markets.
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Crypto’s scale shows it’s targeting trillion-dollar global markets.
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Investors should treat crypto like venture capital with high risk and massive upside.
Tether’s Growth Path
Tether, the largest stablecoin issuer, could one day become the most profitable company in history, according to Bitwise CIO Matt Hougan. In a memo to clients, Hougan argued that while a $500 billion valuation for Tether sounds extraordinary, the scale becomes realistic when compared with the trillions flowing through global money markets.
Tether already holds over $127 billion in U.S. Treasuries, ranking it among the top 20 sovereign debt holders worldwide, close to Saudi Arabia and Germany. Its flagship USDT token is used by more than 400 million people, growing by around 35 million wallets each quarter, especially in developing countries.
How Tether Makes Its Money
The company profits mainly from interest earned on its vast Treasury holdings. If Tether’s assets under management were to grow to $3 trillion, annual profits at today’s interest rates could surpass Saudi Aramco’s $120 billion record in 2024. With fewer than 200 employees, Tether already posted profits of $13 billion last year, making it one of the most profitable companies per employee in the world.
Beyond Stablecoins
Tether is also diversifying its portfolio, investing in areas like AI, telecoms, energy infrastructure, and bitcoin mining. It currently holds over 100,000 BTC, worth $11.4 billion. The company recently introduced USAT, a new dollar-pegged stablecoin aimed specifically at the U.S. market, complementing USDT’s global presence.
The Bigger Picture for Crypto
Hougan used Tether’s growth to highlight a larger point: crypto is chasing enormous global markets, including payments ($1.8 quadrillion annually) and financial assets ($665 trillion combined). Ethereum and Solana, he said, are well-positioned as decentralized computing platforms capable of capturing meaningful shares of these markets, justifying their multi-hundred-billion valuations.
Investor Takeaway
For investors, Hougan advised thinking of crypto like venture capital — high-risk but potentially world-changing. Many projects may fail, but the winners could surpass even the most successful companies in traditional markets. The key, he said, is not guessing which token succeeds, but betting on crypto’s importance in the next five years.
