Tether could become the most profitable company in history: Bitwise CIO

Bitwise CIO Matt Hougan says Tether could one day surpass Saudi Aramco as the most profitable company in history.

Summary

Crypto is tackling some of the biggest markets in the world, says Bitwise CIO
Bitcoin is going after gold, altcoins after payments infrastructure
Tether could become one of the most valuable startups in the world

The crypto industry is often underestimated by mainstream finance. According to Bitwise CIO Matt Hougan, critics overlook a key point: the sheer scale of the markets crypto aims to disrupt. In a Sept. 29 memo, Hougan made a bold prediction—particularly regarding stablecoin issuer Tether.

People are often surprised that Bitcoin (BTC)is a $2.3 trillion asset, Hougan noted, which puts it in line with Amazon’s valuation. The comparison makes more sense when you consider that Bitcoin is competing with gold, a roughly $25 trillion market. At the same time, altcoins like Ethereum (ETH) and Solana (SOL) are targeting “issuance, trading, and settlement” markets, especially for tokenized assets.

“These are enormous markets,” says Hougan. “According to McKinsey, the global payments industry processes 3.4 trillion transactions worth $1.8 quadrillion each year. Estimates from SIFMA and Savills peg the combined value of stocks, bonds, and real estate at $665 trillion.”

Tether could be more profitable than Saudi Aramco

For this reason, the news that Tether is targeting a $500 billion valuation should not surprise traders, Hougan wrote. Tether is targeting a huge market, with nearly 100% share of stablecoin transactions in many regions.