(Dec 21): The world’s biggest stablecoin issuer, Tether Holdings Ltd, is on track to close the year with more than US$10 billion (RM45.07 billion) in net profits, chief executive officer Paolo Ardoino said in an interview.

As bitcoin and many other cryptocurrencies rallied to new all-time highs, demand for Tether’s USDT stablecoin — pegged to the dollar — has skyrocketed. The token added nearly US$50 billion to its market capitalisation this year, and it now stands at more than US$140 billion, according to data tracker CoinMarketCap. Much of Tether’s earnings come from investing its reserves backing stablecoins, including USDT, into US Treasuries, gold and other securities.

This year, Tether invested more than half of its net profits, Ardoino said. On Friday, the company announced that it had agreed to invest US$775 million into video-sharing network Rumble, including a primary commitment of US$250 million in cash, with Tether also supporting Rumble’s tender offer for up to 70 million shares at US$7.50 per share.

“Next year, we plan to deploy at least half of the profits in investments”, including in AI, Ardoino said. “Our investment is just at the beginning.” In the first quarter, Tether is planning to launch its own artificial intelligence (AI) platform, making it possible for people to interact with AI using their cell phones, he said.

Tether has been investing in bitcoin miners, biotech and other sectors.

The company continues to look at investments in the US, as regulation of crypto is expected to become more favourable under President-elect Donald Trump, Ardoino said. Howard Lutnick, whom Trump nominated to be the commerce secretary, heads Cantor Fitzerald, which purchased a stake in Tether and custodies the stablecoin issuer’s reserves. Lutnick is in talks to deepen financial ties between the two businesses, and has been discussing plans for a lending programme, Bloomberg reported earlier.

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