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How Stablecoin Issuers Make Money: The Business Model Behind the Peg
An article explains how stablecoin issuers make money. It says Tether earned $13 billion in 2024 with about 100 employees, while Circle, MakerDAO, and Ethena each earn revenue from their pegs in different ways.
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What happened
An article explains how stablecoin issuers make money. It says Tether earned $13 billion in 2024 with about 100 employees, while Circle, MakerDAO, and Ethena each earn revenue from their pegs in different ways.
Confirmed
Global impact / market context
Stablecoin issuers can earn large profits from reserves backing tokens that trade near one dollar. That revenue can fund operations and growth, making stablecoin business models important to investors holding USDT or ENA.
Analyst inference
The article compares several stablecoin issuers and their differing ways of earning money. This suggests competition in stablecoins is not only about token adoption but also about how each issuer turns reserve assets into revenue.
Analyst inference
What to watch
- Tether earned $13 billion in 2024 with about 100 employees, according to the article, showing how profitable a large stablecoin issuer can be. Confirmed
- The article proposes that Circle, MakerDAO, and Ethena each monetize their peg differently, so their revenue models may develop separately from Tether's approach. Proposed
- If stablecoin profits depend on reserves and peg demand, changes in interest rates or regulation could affect issuer revenue and investor interest in USDT and ENA. Analyst inference
Affected assets
- USDT — Tether
- ENA — Ethena