How Tether Raked in $4.9B in 90 Days—And Gobbled Up More US Debt Than South Korea

Tether’s profit machine is printing money faster than the Fed—while quietly becoming a heavyweight in US Treasuries. Here’s how the stablecoin giant turned crypto’s chaos into cold, hard cash.

The $4.9 billion question: How does a ‘stable’ coin mint profits like a meme coin?

While regulators nap, Tether’s Treasury shopping spree outpaces entire nations. Guess collateral’s back on the menu, boys.

Bonus jab: Who needs a central bank when you’ve got a crypto company playing bond-market arbitrage with your grocery money?

TLDR

• Tether reported $4.9 billion net profit in Q2 2025, a 277% increase from the same quarter last year
• The company holds $162.5 billion in reserves against $157.1 billion in liabilities, creating $5.4 billion in excess reserves
• Tether became the 18th-largest holder of US Treasury bonds with over $127 billion in exposure
• The company invested $4 billion in US-based initiatives including AI, renewable energy, and digital communications
• USDT maintains 61.7% market share of all stablecoins with $164.5 billion market cap

Tether International Ltd., the company behind the world’s largest stablecoin USDT, posted a record $4.9 billion net profit in the second quarter of 2025. This represents a 277% increase compared to the same period in 2024.

Tether Issues $20B in USD₮ YTD, Becomes One of Largest U.S. Debt Holders with $127B in Treasuries, Net Profit ~$4.9B in Q2 2025 Attestation Report

Read more: https://t.co/0sJW8MiSoO

— Tether (@Tether_to) July 31, 2025

The financial results come as stablecoins gain wider acceptance in traditional finance. Regulatory clarity in the United States has helped fuel this growth.

According to an attestation by accounting firm BDO, Tether held $162.5 billion in reserves against $157.1 billion in liabilities as of June 30. This creates an excess reserve of $5.4 billion.

The liabilities primarily consist of USDT tokens that have been issued to users. USDT remains the dominant stablecoin with a 61.7% market share and $164.5 billion market capitalization.

Tether expanded its holdings of US Treasury bonds to over $127 billion during the quarter. This includes direct holdings and instruments like money market funds and overnight reverse repurchase agreements.

The company’s Treasury position makes it the 18th-largest holder of US debt instruments globally. Tether surpassed South Korea to reach this ranking.

Treasury Holdings Drive Profitability

The company issued more than $13 billion worth of new USDT tokens during the quarter. This expansion drove increased Treasury holdings and contributed to the strong profit margins.

For the first six months of 2025, Tether recorded total profits of $5.7 billion. This represents a 9.6% increase from $5.2 billion in the same period of 2024.

The profits include $3.1 billion in recurrent earnings and $2.6 billion from mark-to-market gains. The gains came from price increases in gold and Bitcoin holdings.

Tether holds approximately $8.9 billion worth of bitcoin in its reserves. This translates to over 83,200 bitcoin tokens as of June 30.

Investment in US Initiatives

Tether has invested approximately $4 billion in US-based projects across multiple sectors. These investments span artificial intelligence, renewable energy, and digital communications.

The investments include XXI Capital, a bitcoin treasury firm preparing to go public. The company plans to merge with a Cantor Fitzgerald-backed shell company.

Other investments include funding for video platform Rumble and development of Tether’s crypto wallet services. These moves represent Tether’s expansion beyond stablecoin operations.

The timing coincides with new US regulatory framework for stablecoins. President TRUMP signed the GENIUS Act into law in July 2025, creating the first federal stablecoin regulations.

CEO Paolo Ardoino stated the company will comply with new regulations. Tether plans to issue an onshore version of its stablecoin for US markets.

Circle, Tether’s main competitor and creator of USDC, completed an initial public offering in June 2025. Circle’s stock debuted at $31 per share and currently trades at $186.83.

PayPal announced a 3.7% yield on its stablecoin offering in April 2025. World Liberty Financial, associated with President Trump, launched its own stablecoin and invested $10 million in blockchain infrastructure.

European regulators are also taking action on stablecoins. Deutsche Bank, Galaxy, and Flow Traders launched a euro-backed stablecoin on ethereum this week.