Key Insights Tether news showed quarterly operating profit reached $1.5 billion. USDT issuance increased despite contraction across the stablecoin market. Treasury bills and repos remained th
Tether news showed the stablecoin issuer earned $1.5 billion in second-quarter operating profit. Tether published the BDO-backed attestation on July 31, covering reserves held on June 30.
The result showed how interest income still supported Tether crypto earnings during weaker market conditions. USDT supply also expanded while the wider stablecoin sector contracted during the quarter.
Tether said U.S. Treasury holdings and repurchase agreements drove quarterly operating profit. The company held $187.75 billion in assets against $183.64 billion in liabilities.
Source: X That difference left a $4.11 billion excess reserve buffer at quarter-end. Digital tokens issued accounted for $183.62 billion of reported liabilities.
The cushion narrowed from $8.23 billion at March’s close, Tether’s first-quarter statement showed. That decline followed lower asset values and net capital movements during the first half.
Tether’s report recorded a $3.17 billion financial loss and $943 million in net capital inflows. Those figures explained why equity fell despite positive second-quarter operating profit.
BDO Advisory Services provided reasonable assurance over the financial figures and reserves report. Its opinion found the report fairly presented under Tether’s stated accounting criteria.
However, BDO limited its assurance to balances recorded at one specific date. The firm did not assess activity before or after June 30.
The report also differed from a complete audit of financial statements. Tether’s filing lacked all disclosures required for full International Financial Reporting Standards compliance.
Tether’s reserve report listed $114.96 billion in direct U.S. Treasury bills. Overnight reverse repos added $18.63 billion, while term reverse repos contributed $6.99 billion.
Cash equivalents and other short-term deposits totaled $140.64 billion. That allocation represented roughly three-quarters of the company’s reported reserve assets.
The U.S. Treasury reported three-month bill yields near 3.7% on June 30. Those rates kept short-duration government securities profitable for large cash portfolios.
The Federal Reserve maintained its target range at 3.50% to 3.75% in June. That policy backdrop supported Tether’s interest income throughout the reporting period.
Tether also reduced secured lending exposure by $2.38 billion, or 15%. Still, secured loans remained worth $13.45 billion at quarter-end.
The company valued those loans at amortized cost and described them as overcollateralized. BDO tested sampled contracts, collateral, and related transactions.
Tether said USDT issuance reached approximately $184.6 billion by quarter-end. The figure increased by $446 million from the first quarter.
The issuer said USDT retained over 60% of global stablecoin supply. DeFiLlama later placed USDT dominance near 59.3%, reflecting different timing and circulation measurements.
DeFiLlama valued the stablecoin market at $309.9 billion on Aug. 1. Its dashboard placed circulating USDT at $183.9 billion.
The variance mattered because issued tokens can differ from circulating market capitalization. Treasury-held tokens and redemption adjustments can produce gaps between measurements.
USDT remained the largest stablecoin by supply under both measurements. Its scale preserved Tether’s leading position despite limited quarterly issuance growth.
Tether reported $18.84 billion in precious metals at June’s close. The company said it added 14 metric tons of physical gold.
Its total bullion holdings exceeded 146 metric tons after that purchase. Tether Chief Executive Officer Paolo Ardoino linked the allocation to reserve diversification.
Bitcoin reserves carried a reported value of $5.80 billion. The filing used a June 30 Bitcoin price of $58,642.15 for valuation.
That figure covered Bitcoin held in on-chain wallets controlled by Tether. The report did not confirm the 98,936 Bitcoin figure circulated on social media.
Public equities contributed another $3.76 billion, while other investments reached $5.24 billion. These categories carried greater market risk than Treasury bills and cash deposits.
BDO also warned that asset values assumed normal trading conditions. Extraordinary illiquidity or counterparty stress could delay realizable values.
Tether’s next formal reserve checkpoint will cover Sept. 30, 2026. That attestation should show whether USDT growth and Treasury income continued.
The post Tether News: Q2 Profit Hits $1.5B as USDT Supply Reaches $184.6B appeared first on The Coin Republic.
