Stablecoin projects remain the top earners in the crypto economy, capturing roughly 60% to 75% of total daily protocol revenues across major categories.
Tether’s CEO, Paolo Ardoino, even stated that the firm is on track for $15 billion in profit this year and an extraordinary 99% margin—making it one of the most profitable businesses globally on a per-employee basis.
Tether and Circle invest user deposits in safe, yield-bearing assets
Stablecoins have emerged as a major source of cryptocurrency liquidity and are utilized in exchanges, decentralized finance systems, and cross-border payment systems. Since they offer more stability compared to other tokens, such as Bitcoin and Ethereum, among others, which experience rapid value fluctuations, they have been instrumental for businesses and institutional investors in value transfer.
Stablecoin issuers make money by earning interest on the assets backing their tokens. Companies like Tether and Circle are investing user deposits in safe, yield-bearing assets—mainly U.S. Treasuries and cash—and keep the returns rather than sharing them with users.
The GENIUS Act, enacted in July, codifies this principle by preventing authorized stablecoin issuers from distributing any form of yield to holders. Lawmakers intended to position payment stablecoins as cash-like instruments, rather than investments.
Nonetheless, growing stablecoin competition has forced some projects to experiment with distinct forms of initially spreading value. USDe is one of the major disruptors to emerge, creating a synthetic dollar model that instantly yields returns to holders.
Users keeping USDC on Coinbase can also generate a 3.85% APY, though it was a creative check to the GENIUS Act’s issuer-provided yield prohibition. This represents a shift in how ROI is generated and distributed within the crypto community.
BlackRock is increasingly involved in the stablecoin market
In a report released in late September, Citi analysts predicted that stablecoin issuance could reach $4 trillion by the end of the decade, compared to approximately $280 billion today. Financial giant BlackRock has been increasing its involvement in the stablecoin market as demand for tokenized cash products grows.
The company has long worked with Circle, the second-largest stablecoin issuer, overseeing most of its reserve fund. Following Circle’s high-profile stock market debut in June, the company is also exploring the option of offering similar services for reserve management to other stablecoin issuers. It has also been building on that, with its BSTBL fund serving as an important part of its broader strategy to expand in digital finance.
Jon Steel, the global head of product and platform for BlackRock’s cash management business, told CNBC the fund helps the firm extend its reach in a rapidly maturing sector.
He noted, “It represents an opportunity not just to help our clients if they’re looking to issue a stablecoin and how we can help them in doing that, but clearly this is going to create the potential for new distribution opportunities.”
The fund is open to institutional investors, including pension funds and university endowments. Longer trading hours could benefit BlackRock’s clients in the Western United States by enabling them to manage daily cash flow and profit and loss (P&L) operations for a greater portion of the business day. The firm’s digital asset line already includes Bitcoin and Ethereum products, which were launched.
On related development, MARA reported $252.4 million in revenue for Q3, up from $131.6 million in the same quarter last year. That still came in a bit under the $254.5 million Wall Street expected.
Net income came in at $123 million, helped by a $343.1 million gain from the change in the fair value of its bitcoin holdings.
The company said, “As our bitcoin holdings grow, we expect BTC price volatility to have a greater impact on our earnings.” Earnings per share were $0.27, missing the average estimate of $0.67, down from $1.84 in Q2, but up from -$0.42 in the same period last year. No sugarcoating that swing.
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