Tether News: Q2 profit reaches US$1.5 billion, USDT supply climbs to US$184.6 billion

Key Insights

Tether News shows quarterly operating profit reached US$1.5 billion.

Despite the overall contraction of the stablecoin market, USDT issuance has increased.

Treasury bills and repurchase agreements remain the main reserve assets.

Tether News details profits and reserves

Tether News shows that the stablecoin issuer achieved operating profit of US$1.5 billion in the second quarter. Tether issued a certification report backed by BDO on July 31, covering reserves as of June 30.

The results show how interest income can still support Tether's crypto earnings in weaker markets. At the same time, USDT supply expanded while the broader stablecoin industry contracted during the quarter. [TAG

Tether said Treasury holdings and repurchase agreements drove quarterly operating profit. The company holds $187.75 billion in assets and $183.64 billion in liabilities.

Source: X

This difference brought the excess reserve buffer at the end of the quarter to US$4.11 billion. Issued digital tokens accounted for $183.62 billion of reported liabilities.

Tether's first-quarter results showed that the buffer narrowed from US$8.23 billion at the end of March. The decline was due to a decline in asset values and net capital flows in the first half of the year.

Tether's report recorded a financial loss of $3.17 billion and a net capital inflow of $943 million. These numbers explain why equity fell despite positive operating profit in the second quarter.

BDO Advisory Services provides reasonable assurance of financial data and reserve reporting. In his opinion, the report is fairly presented in accordance with the accounting standards stated by Tether.

However, BDO's guarantee is limited to balances recorded on a specific date. The company did not assess activity before or after June 30.

This report is also different from a complete financial statement audit. Tether's documents lack all the disclosures needed to fully comply with IFRS.

Tether News shows Treasury revenue supports earnings

Tether's reserves report lists $114.96 billion in direct U.S. Treasury bonds. Overnight reverse repos increased by $18.63 billion, while regular reverse repos contributed $6.99 billion.

Cash equivalents and other short-term deposits totaled US$140.64 billion. This allocation accounts for approximately three-quarters of the company's reported reserve assets.

The U.S. Treasury Department reported that the yield on the three-month Treasury note was close to 3.7% on June 30. These interest rates keep short-term government securities profitable against large cash portfolios.

The Federal Reserve maintained its target interest rate range between 3.50% and 3.75% in June. This policy background supported Tether's interest income throughout the reporting period.

Tether also reduced its secured loan exposure by $2.38 billion, a 15% decrease. Despite this, secured loans at the end of the quarter still reached $13.45 billion.

The company priced the loans at amortized cost and called them overcollateralized. BDO tested sampled contracts, collateral and related transactions.

USDT supply grew while the stablecoin market contracted

Tether said USDT issuance reached approximately US$184.6 billion as of the end of the quarter. This figure was an increase of $446 million from the first quarter.

The issuer stated that USDT accounts for more than 60% of the global stablecoin supply. DeFiLlama later set USDT dominance at approximately 59.3%, reflecting different ways of calculating time and circulation.

DeFiLlama set the stablecoin market valuation at US$309.9 billion on August 1. Its dashboard shows USDT in circulation at $183.9 billion.

This difference is important because the issued tokens may differ from the market value in circulation. Currency holdings and redemption adjustments may cause gaps between measurements.

On both measures, USDT remains the largest supply of stablecoin. Although quarterly circulation growth was limited, its size maintained Tether's leading position.

Tether's crypto reserves increase in gold, Bitcoin's value falls

Tether reported that as of the end of June, precious metals reserves were US$18.84 billion. The company said it added 14 metric tons of physical gold.

After purchase, its total gold holdings exceeded 146 metric tons. Tether CEO Paolo Ardoino linked this configuration to reserve diversification.

Bitcoin reserves are reported to be valued at US$5.80 billion. The document uses the June 30 Bitcoin price of US$58,642.15 to value it.

This number covers bitcoins held in chain wallets controlled by Tether. The report did not confirm the 98,936 bitcoin numbers circulating on social media.

Public equity contributed another $3.76 billion, while other investments reached $5.24 billion. These categories bear higher market risk than treasury bills and cash deposits.

BDO also warned that asset values assume arm's length trading conditions. Unusual illiquidity or counterparty pressure may delay realizable value.

Tether's next official reserve checkpoint will cover September 30, 2026. The certificate should show whether USDT growth and Treasury revenue are continuing.