According to an analysis by OKG Research, the profit models of Tether and Circle are expected to significantly diverge in 2024. Tether's net profit is projected to reach 13 billion USD, with only 54% coming from interest on U.S. debt, and nearly 5 billion USD from unrealized floating profits on Bitcoin and gold, indicating a high volatility revenue structure. Circle disclosed in its IPO prospectus that its revenue will reach 1.68 billion USD in 2024, with 95%-99% coming from interest income, while service revenue accounts for only 0.9%. Tether tends to follow an "offshore hedge fund" model, whereas Circle resembles a "digital currency fund" that is deeply tied to interest rate cycles. The differences in their profit structures are becoming increasingly apparent.

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USDT

PANews reported on April 3 that according to OKG Research analysis, Tether's net profit in 2024 will reach US$13 billion, of which only 54% will come from US debt interest, and nearly US$5 billion will come from unrealized floating profits of BTC and gold. BTC holdings exceed 100,000, showing a high volatility income structure. Circle disclosed in its IPO prospectus that its revenue in 2024 will reach US$1.676 billion, 95%-99% of which will come from interest income, and service income will account for only 0.9%. Tether tends to be an "offshore hedge fund" model, while Circle is steadily promoting compliance listing, more like a "digital currency fund" deeply anchored to the interest rate cycle. The profit structure of the two stablecoins is becoming more and more differentiated.

The Differentiation of Profit Models Between Tether and Circle