Tether's USDT Stablecoin Generates $481M in Fees Over Past Month

Tether's USDT stablecoin has generated nearly $481 million in fees over the past 30 days, according to data from DefiLlama. This is a staggering figure that underscores the profitability of stablecoin issuance.

The revenue model used by Tether is based on earning interest on the assets backing its tokens. USDT holders do not earn interest on their tokens, but the company earns interest on its reserves, which sit mainly in short-term U.S. Treasury bills and other fixed-income instruments.

This model scales directly with two factors: the size of USDT's circulating supply and the attractiveness of short-term Treasury yields. Both have worked in Tether's favor for much of the past two years, a period that has seen USDT rise to become the dominant stablecoin by circulating supply.