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0 sats \ 5 replies \ @go 17 May 2023 \ on: Tether to invest up to 15% of its profits in bitcoin bitcoin
How the hell does a stable coin make profit?
You switch with them your us dollar in the bank and you take their token , so they got us dollar and they buy us treasury short term 5%
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they hold short term US treasuries, which pay them interest (and a lot more interest now that benchmark interest rates are around 5%).
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Not to mention that Tether's operating costs are likely far cheaper than a typical bank. Holders of USDT aren't even expecting those interest rates to be passed onto them.
I don't use USDT nor would I recommend it, but I have to admit they have a neat business model.
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yeah good point, are they the most profitable business in the crypto industry?
can’t think of anyone else who is making that much money right now…
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Not sure. I guess minting shitcoins out of nothing and dumping on retail will always be profitable too!
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