This article explores the profitability of stablecoins, particularly focusing on Tether's success and the limitations of its business model. It outlines three monetisation strategies: issuance, flow, and payment acceptance, concluding that payment acceptance offers the best long-term potential for sustainable growth in the stablecoin market.

This article examines Tether's balance sheet and capital adequacy in the context of its role as a digital deposit instrument. It critiques the common misconceptions about Tether's solvency and discusses the regulatory frameworks applicable to its operations, comparing it to traditional banking practices.

Tether CEO Paulo Ardoino and Circle CEO Jeremy Allaire expressed their readiness to comply with the newly signed GENIUS Act, which connects stablecoins to the U.S. financial system. Ardoino outlined Tether's plans to adjust its operations to meet new auditing standards and develop a U.S.-centric stablecoin aimed at institutional users, while Allaire emphasized Circle's commitment to transparency and trust in response to the evolving regulatory landscape.