Tether, the company behind the world's largest stablecoin, reported a $1.5 billion profit for the second quarter as its USDT token supply expanded and its holdings in gold climbed, according to its latest attestation report.
A Snapshot of the Reserves
The quarterly attestation provides a window into the assets that back USDT, the dominant stablecoin in the crypto market. Tether's reserves span a mix of instruments, led by U.S. Treasuries and repurchase agreements that make up the bulk of its holdings.
Beyond traditional cash-equivalent assets, the company disclosed it now holds more than 146 metric tons of gold. The precious metal has become a growing component of Tether's balance sheet as the firm diversifies the collateral supporting its token.
More than 146 metric tons of gold now sit among the assets backing the world's largest stablecoin.
The report comes as regulators and market participants continue to scrutinize stablecoin issuers over the composition and transparency of their reserves. Attestations like this one are intended to reassure holders that each token is fully backed.
Growth and Profitability
USDT's circulating supply grew during the quarter, reflecting sustained demand for the dollar-pegged token across trading, remittances, and decentralized finance. The expansion helps drive Tether's earnings, since the company generates income from the yield on its reserve assets.
The $1.5 billion profit underscores how lucrative the stablecoin business has become, particularly in an environment of elevated interest rates that boost returns on Treasury holdings.
Key highlights from the quarter include:
- A reported net profit of $1.5 billion
- Continued growth in USDT circulation
- Gold holdings exceeding 146 metric tons
- Reserves anchored by U.S. Treasuries and repo agreements
As competition among stablecoin issuers intensifies, Tether's financial results and reserve disclosures remain closely watched indicators of the sector's overall health.