Tether Posts Over $10B Profit

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Good Morning,

Stablecoins are now crypto’s biggest profit engines. Tether has earned over $10B this year, powered by huge Treasury holdings and hundreds of millions of users. But rivals like USDe and USDC rewards are challenging that model, pushing the race toward greater transparency and fairer value sharing.

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In Today's Email:

• What Matters: Tether Posts Over $10B Profit 🤑 

• Product of the Week: Spot SOL ETFs Attract $200M in First-Week Inflows 💰️ 

• Charts: DEX Trading Volume Hits ATH, Stablecoin Capture 75% of Revenue 📈 

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WHAT MATTERS

Tether Posts Over $10B Profit

State of play: Tether has reported more than $10B in profits for the first three quarters of 2025, with third-quarter earnings exceeding $4.3B.

• The stablecoin giant also expanded its US Treasury exposure to $135B, alongside $13B in precious metals and $10B in Bitcoin.

• The company issued an additional $17B in USDT during Q3, reflecting strong demand despite global market headwinds.

• Tether now claims over 500M users and is reportedly in talks to raise up to $20B at a $500B valuation.

Why it matters: Tether’s $10B profit shows how powerful stablecoins have become.

Our take: Tether’s profit engine looks unstoppable, but its lack of full audits still raises questions. It acts like a central bank for crypto, yet operates with private-company secrecy.

For builders and investors: Everyone should keep an eye on where it expands next, as its rumored $500B valuation signals that stablecoins are moving into a new era of financial power.

PRODUCT OF THE WEEK

Spot Solana ETFs Attract $200M in First-Week Inflows

Newly launched US spot Solana ETFs from Bitwise (BSOL) and Grayscale (GSOL) have pulled in around $200M in inflows during their short debut week.

• Bitwise’s BSOL led the charge with nearly $420M in total flows, including seed capital, making it the top-performing crypto ETF of the week.

• Grayscale’s GSOL trailed with about $2M in inflows but holds over $100M in assets.

• Both funds stake their SOL holdings, with Grayscale passing 77% of staking rewards to investors.

• The launches bring total Solana ETF assets above $500M, underscoring growing institutional demand.

• Meanwhile, Bitcoin and Ethereum ETFs also saw strong October inflows, with BTC funds recording $3.6B in inflows and $133B in trading volume.

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• Beefy Finance, a multichain yield optimizer.

• CiaoTool, a powerful, no-code automation tools.

• Tymio, a decentralized structured products protocol.

• Sake Finance, an integrated liquidity protocol on Soneium.

• HAPI ID, a digital identification of a user’s on-chain activity.

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CHARTS OF THE WEEK

DEX Trading Volume Hits Record $613B in October

State of play: Decentralized exchange trading volume reached an all-time high of $613.3B in October, up from $500B in September, according to DefiLlama.

• Uniswap led with $170.9B in volume, followed by PancakeSwap at $101.9B.

• The spike came as traders shifted funds amid heightened volatility, with Bitcoin dropping to around $104,600 mid-month.

• Centralized exchanges also saw a surge, hitting $2.17T in combined volume, the highest since January.

• Binance remained dominant with $810B traded.

• The DEX-to-CEX ratio climbed to nearly 20%, reflecting growing on-chain engagement.

Our take: The DEX volume surge shows traders are moving back on-chain for more than just airdrops.

Stablecoin Issuers Now Capture Up to 75% of Crypto Revenue

State of play: Stablecoin issuers dominate the crypto revenue landscape, accounting for 60% to 75% of total daily protocol earnings across DeFi and infrastructure sectors, according to The Block.

• Tether leads the pack, projected to generate $15B in profit this year with a 99% margin, making it one of the most profitable companies globally.

• The model thrives on yield from US Treasuries and cash equivalents, which issuers keep instead of distributing to users.

• The GENIUS Act bans interest payments on payment stablecoins.

• Competition is growing as newer entrants like USDe offer yield via synthetic models, and Coinbase indirectly rewards USDC holders with 3.85% APY.

• As Tether expands its regulated USAT product, the battle for user trust and market share among stablecoin issuers is entering a new phase.

Our take: Stablecoins now run crypto’s profit game. Tether still leads, but yield-paying challengers like USDe and USDC rewards are changing the rules.

QUICK BITES

• DEX volume hits all-time high in October.

• Stablecoin issuers dominate crypto revenue.

• Tether's annual profits top $10B as Treasury holdings swell.

• EC eyes SEC-style single supervisor over crypto, stock exchanges.

• Monthly Ethereum stablecoin volume hits record $2.8T in October.

• Hong Kong to allow crypto exchanges to access global liquidity pools.

• Balancer potentially exploited as onchain data shows millions in outflows.

• US spot SOL ETFs draw $200M in inflows during short debut trading week.

• Polymarket activity rebounds to new highs while Kalshi dominates in volume.

NOTEWORTHY READS & MEME

• Exagroup’s read on Crypto Is Now a Stablecoin Industry.

• CBB’s read on How We Made $5M Running the #1 Arbitrage Bot.

• Stablewatch’s thread on Yield Bearing Stablecoin Ecosytem Map.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.