Tether earns $1.5B in Q2 as US Treasury holdings fuel profits

Tether, the stablecoin issuer, reported a net operating profit of $1.5 billion for the second quarter, according to its latest quarterly attestation released on Friday. This strong financial performance was primarily driven by interest income from its holdings in US Treasury securities and repurchase agreements, which are short-term loans backed by government securities. Despite challenging conditions in the broader crypto market, Tether continued to grow its circulating USDt supply by $446 million during the quarter, reaching a total supply of $184.6 billion.

As of June 30, Tether had a reserve buffer of $4.11 billion, indicating that its assets exceeded liabilities by that amount. The company maintained more than 60% of the global stablecoin market, which was valued at approximately $307 billion according to DeFiLlama data. Tether’s significant holdings in US Treasury securities remain a key component of its reserve portfolio, allowing the company to benefit from elevated short-term interest rates and bolster its income from Treasury bills and cash-equivalent assets.

This development matters because Tether’s reliance on US Treasury securities as collateral has reinforced its financial stability during a period of broader market contraction in the stablecoin sector. The income generated from these government-backed assets has helped sustain Tether’s profitability and its dominant market position in global stablecoins. The report highlights how traditional financial instruments, such as US Treasuries, play a crucial role in supporting the ongoing operations of major stablecoin issuers like Tether.