Defi
How Do Stablecoins Make Money? Tether, Circle & Reserve Income Explained
CoinCentral·October 14, 2026·1 min read
Stablecoin issuers like Tether and Circle earn billions in profits by holding the dollars that back each token and collecting interest on them. Holders of stablecoins pegged to $1 do not gain from price moves, but the companies behind them profit from reserve income. This model explains their reported profits.
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