Tether Reports $4.9 Billion Profit in Q2 as Stablecoin Adoption Soars

Tether, the world’s largest stablecoin issuer, delivered another record-breaking quarter, reporting $4.9 billion in profit for Q2 2025. That’s a 277% increase year-over-year, driven by booming demand for stablecoins and higher returns on its U.S. Treasury holdings.

Combined with Q1 earnings, Tether has now posted $5.7 billion in profit during the first half of 2025—up 9.6% from the same period in 2024.

USDt Continues to Dominate

Tether’s flagship stablecoin, USDt, remains the undisputed leader in the stablecoin market. According to DeFiLlama, USDt currently accounts for 61.7% of all stablecoin value with a market cap of $164.5 billion.

This massive footprint comes as global demand for dollar-backed digital currencies rises and U.S. lawmakers accelerate crypto policy efforts.

Massive Treasury Holdings Boost Revenue

As of June 30, Tether reported:

• $162.6 billion in total assets
• $157.1 billion in liabilities (mostly linked to token issuance)
• $127 billion in U.S. Treasurys

This surge in Treasury exposure makes Tether the 18th-largest holder of U.S. government debt, surpassing countries like South Korea.

Tether’s positioning as a top U.S. debt holder comes as Washington embraces digital dollar innovation through the GENIUS Act, signed into law by President Trump in July.

GENIUS Act and Regulatory Tailwinds

The GENIUS Act introduces the first regulatory framework for stablecoins in U.S. history. Designed to ensure dollar leadership in global digital finance, the Act provides clarity for issuers like Tether, fueling confidence and attracting institutional capital.

A company spokesperson noted:

“We welcome regulatory clarity and believe the GENIUS Act will help expand global adoption of compliant, dollar-backed stablecoins.”

Stablecoin Competition Heats Up

Tether’s competitors are also making major moves:

• Circle, issuer of USDC, went public in June 2025. Its stock jumped from $31 to $186.83.
• PayPal began offering a 3.7% yield on its stablecoin in April.
• World Liberty Financial, a crypto venture tied to President Trump, launched its own stablecoin and invested $10 million in Falcon Finance.
• In Europe, Deutsche Bank, Galaxy, and Flow Traders launched a EURO-backed stablecoin on Ethereum.

Global Financial Implications

Jürgen Schaaf, adviser to the European Central Bank, warned this week that Europe could fall behind if it fails to create a unified framework for stablecoins—potentially reinforcing U.S. dollar dominance via platforms like USDt and USDC.