Tether posted a $1.5 billion profit for the second quarter, fueled largely by income from its Treasury holdings. Despite a sluggish crypto market, the supply of its stablecoin USDT climbed to nearly $184.6 billion, solidifying its grip on the global stablecoin market.
USDT Supply Growth Contrasts Market Weakness
Between March and June 2026, Tether increased its USDT issuance by approximately $446 million. This rise pushed the stablecoin's total circulation close to $184.6 billion, even as overall cryptocurrency valuations remained subdued. USDT held above 60% market share among stablecoins, while the sector's total market cap hovered near $307 billion. Tether's user base expanded by over 30 million during the quarter, with growing adoption from businesses and exchanges, especially in developing regions where banking options are limited. These figures shows persistent demand for dollar-pegged liquidity in trading and payment systems.
Treasury Assets and Reserve Strategy Boost Earnings
The bulk of Tether's quarterly profit originated from its portfolio of United States Treasury securities and repurchase agreements. These short-term government-backed assets produced steady revenue amid rising interest rates. Tether maintained a reserve surplus of $4.11 billion at the quarter’s end, ensuring liquidity to meet redemption demands without resorting to riskier investments. The company's status as a major US Treasury holder helped it benefit from higher yields on short-dated debt, strengthening earnings while keeping token issuance risks in check. Tether trimmed its exposure to secured lending by around $2.38 billion, focusing more on liquid government instruments.
Earlier reports also showed Tether boosting reserves in Bitcoin and gold, illustrating a diversified approach to backing its stablecoin supply.
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