Profit From The Tether vs. Circle Spread

[cryptoenthusiast]

Tether generated $5B profit in Q2 2025, while Circle’s IPO valued it at ~$35B. The huge gap creates relative value opportunities:

How to make money:

Arbitrage DeFi yields: Tether-backed pools (USDT) may pay less, while Circle-backed pools (USDC) may need to offer higher incentives to attract liquidity. Rotate between them.

Stablecoin dominance trade: Long USDT-backed pairs vs. short USDC-backed pairs. This strategy benefits if Tether strengthens while Circle weakens post-IPO.

Equity exposure: If Circle’s stock is tradable, investors could hedge equity exposure with on-chain stablecoin plays.