Tether reported a $1.5 billion operating profit in the second quarter, driven mainly by income from U.S. Treasury holdings and repurchase agreements. Despite a broader contraction in the stablecoin market, the supply of USDT continued to grow, reaching $184.6 billion by the end of June.

Financial Snapshot and Reserve Composition

The company held $187.75 billion in assets against $183.64 billion in liabilities at the end of Q2, leaving an excess reserve cushion of about $4.11 billion. This buffer decreased from $8.23 billion at the end of March following declines in asset values and net capital movements during the first half of the year. USDT tokens accounted for $183.62 billion in liabilities.

While Tether’s report showed positive operating profits, it also recorded a $3.17 billion financial loss and $943 million in net capital inflows for the period, explaining a reduction in equity despite healthy earnings. The attestation, conducted by BDO Advisory Services, confirmed the accuracy of the June 30 figures but did not cover activities outside that date or meet full International Financial Reporting Standards disclosures.

How Treasury Income Sustains Earnings Amid Market Volatility

The bulk of Tether’s reserves consisted of U.S. Treasury bills and reverse repurchase agreements, totaling roughly three-quarters of its reported assets at $140.64 billion. Direct Treasury bills stood at $114.96 billion, with overnight reverse repos adding $18.63 billion and term reverse repos at $6.99 billion. This heavy allocation to cash equivalents helped sustain interest income, supporting the company’s stablecoin issuance expansion despite a tougher market environment.

Tether’s ability to grow USDT supply contrasts with the overall stablecoin market’s downturn. The company’s financial updates highlight how traditional financial instruments still play a key role in the crypto ecosystem’s revenue generation. For related market fluctuations and earnings shifts, see Tether’s Profit Hits $1.5 Billion as Reserves Shrink Amid Market Swings.

This content is informational and not financial advice.