Tether’s $20B Liquidity Surge in H1: US Debt Bonanza & Record Profits

Tether just flexed its market muscle—pumping $20 billion into crypto's veins in six months while gobbling up US debt like a Wall Street buffet.

The stablecoin giant's balance sheet is now stuffed with Treasury bills, proving even crypto's 'safe haven' plays the fiat game. Profits? Stacked higher than a DeFi yield farmer's leverage.

Meanwhile, traditional banks are still trying to mint their own stablecoins without the audacity (or the 1:1 reserves). Stay greedy, finance.

Tether grew its exposure to US treasuries

To support its new USDT emissions, Tether had to grow its exposure to US treasuries. As of June 30, total exposure to US treasuries exceeded $127B, with $8B added in Q2. Tether expanded its global presence while still working toward becoming a MiCA-compliant asset in the EU. The token retained its primacy, with speedier expansion compared to its main rival, Circle’s USDC.

Tether holds $105.5B in direct holdings, with $21.3B owned indirectly. Tether’s reserves showed a mix of private financial innovation and public monetary goals. 

Tether was emboldened to grow the USDT supply, as US lawmakers offered a favorable framework to make the dollar the key metric for crypto trading. The application of the US GENIUS Act, regulating stablecoins, has turned dollar-denominated tokens into the leading source of liquidity. 

Tether posted robust profits in Q2

Tether posted $4.9B in net profits for the second quarter, bringing the total for H1 to $5.7B. The company achieved $3.1B in recurrent profits, excluding additional operations from Gold and Bitcoin, which added another $2.6B.

Tether reinvests its profits in a growing portfolio of over 120 large and small companies. In H1, 2025, Tether gained unprecedented exposure to other businesses as a way of diversifying its activity.

Tether directed the most capital into direct investment efforts compared to its previous history, marking a milestone in expanding the crypto infrastructure. Some of the large-scale initiatives include the Bitcoin treasury company XXI Capital and the investment in Rumble and Rumble Wallet. Tether has deployed an estimated $4B of its own retained earnings into the US-based crypto ecosystem. 

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot