Tether Posts $4.9B Profit in Q2 as Stablecoins Go Mainstream

Tether disclosed another strong quarter as stablecoins continue to gain traction amid growing regulatory clarity in the United States. The company said it posted $4.9 billion in profit for the second quarter of 2025, a 277% increase compared with the same period a year ago.

Tether is the creator of USDt (USDT), a stablecoin pegged to the US dollar and backed by US Treasurys and cash equivalents. According to DefiLlama, USDt continues to dominate the stablecoin market, accounting for 61.7% of all stablecoin value, with a market capitalization of $164.5 billion at this writing.

According to Tether, it had $162.6 billion in assets and $157.1 billion in liabilities as of June 30, with most of the liabilities relating to token issuance.

The company also expanded its exposure to US Treasurys to $127 billion during the quarter, passing South Korea to become the 18th-largest holder of the US debt instruments.

In the first six months of 2025, Tether had a profit of $5.7 billion, a rise of 9.6% from $5.2 billion in the first six months of 2024.

Tether’s position as one of the largest holders of US treasurys “comes at a time when US policymakers, through the GENIUS Act, have taken decisive steps to solidify the dollar’s global leadership in digital form,” according to the report.

Related: Global demand grows for non-dollar stablecoins, says Fireblocks exec

Tether competitors make moves

Tether’s competitors have been busy as well. Circle, a US company and the creator of USDC (USDC), underwent an initial public offering in June 2025. Its stock, which debuted at $31 per share, quickly soared on opening day and is currently sitting at $186.83 at the time of this writing.

Fintech giant PayPal announced a 3.7% yield on its stablecoin in April 2025. World Liberty Financial, one of US President Donald Trump’s crypto ventures, has launched its own stablecoin and invested $10 million in Falcon Finance to develop blockchain infrastructure for such tokens.

Trump signed the GENIUS Act into law in July, the first legislation targeting stablecoins and its issuers in the United States.

Jürgen Schaaf, an adviser to the European Central Bank, said on Tuesday that the EU risks dollar dominance without common rules governing stablecoins. Deutsche Bank, Galaxy and Flow Traders debuted a EURO-backed stablecoin on the Ethereum blockchain on Thursday.

Magazine: Bitcoin vs stablecoins showdown looms as GENIUS Act nears