Tether International Ltd., the holding company behind the largest stablecoin, USDT, posted second-quarter net profit of $4.9 billion.
The company held over $162.5 billion in reserves against $157.1 billion in liabilities from the USDT tokens issued, according to the latest attestation by accounting firm RialCenter. This results in excess reserves of $5.4 billion.
Exposure to U.S. Treasuries, including direct holdings and instruments like money market funds and overnight reverse repurchase agreements, rose past $127 billion as it issued more than $13 billion of USDT in the quarter.
The company reported year-to-date recurrent profits of $3.1 billion, along with another $2.6 billion from mark-to-market contributions due to gold and bitcoin price appreciation. The firm held approximately $8.9 billion in BTC reserves, translating to over 83,200 tokens as of June 30, as noted in the attestation.
Tether has started investing earnings in areas such as artificial intelligence, renewable energy, and digital communications, with U.S.-based initiatives receiving about $4 billion to date.
That figure includes investments in XXI Capital, a bitcoin treasury firm set to go public by merging with a Cantor Fitzgerald-backed shell company, as well as investments in the video sharing platform Rumble and the development of the firm’s crypto wallet offering.
This report arises as stablecoins are increasingly integrated into the broader financial infrastructure, with the U.S. recently signing the GENIUS Act into law to regulate the sector.
Earlier this month, CEO Paolo Ardoino stated in an interview that his company will comply with the new laws and issue an on-shore version of its stablecoin.
Read more: Tether-Focused Blockchain Stable Raises $28M to Power Stablecoin Payments
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