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Key Takeaways:
- Tether earned $5.7B in YTD profit, fueled by U.S. Treasury-backed reserves.
- A new U.S.-compliant stablecoin is set to launch in Q4, focused on institutional use under the GENIUS Act.
- USDT’s market cap hit $163.6B, maintaining a $100B lead over rival USDC.
Tether, the world’s largest stablecoin issuer, reported a staggering $5.7 billion in profit for the first half of 2025, according to its Q2 reserve attestation. The performance underscores the resilience of its business model, driven by interest income from U.S. Treasury holdings backing its flagship USDT token.
CEO Paolo Ardoino revealed the company’s next strategic move: re-entering the U.S. market with a separate stablecoin offering designed specifically for institutional players and compliant with the new regulatory framework.
Q2 Profits Soar as Tether Dominates Stablecoin Market
Tether’s Q2 alone saw $4.9 billion in net profit, a result of holding over $127 billion in short-term U.S. Treasury bills. With USDT’s market cap reaching a new all-time high of $163.6 billion, Tether remains firmly ahead of its closest rival, USDC, which trails with $64 billion.
This financial strength reflects a model optimized for emerging markets, where USDT serves as a hedge against inflation and capital flight. Tether retains all the interest from its reserves—unlike the planned U.S. product, which may share yield with users.
U.S. Launch Targeted for Q4 Under New Stablecoin Law
Ardoino confirmed that Tether is building a new stablecoin for the “highly efficient” U.S. institutional market. This offering will comply with the GENIUS Act, which mandates 100% backing by Treasuries or cash equivalents and U.S. incorporation.
Tether just released its quarterly attestation for Q2 2025.
— Paolo Ardoino 🤖 (@paoloardoino) July 31, 2025
Highlights as of 30th June 2025:
* 157.1B total issued USDt, end of Q2 2025.
* 162.5B total assets/reserves, end of Q2 2025.
* 5.47B excess reserves, on top of the 100% reserves in liquid assets that back all issued… https://t.co/bejhVFkMYt pic.twitter.com/XYVmueWZ0G
The upcoming stablecoin could feature a yield component and aims to serve use cases like payments, trading, and interbank settlement—areas underserved by current options.
Also Read: Tether Plans U.S. Stablecoin Launch After GENIUS Act Sparks Regulatory Clarity
A Dual Approach: Emerging Markets vs. Institutional U.S.
Tether’s dual-track strategy distinguishes between its legacy product (USDT for global, retail-dominated markets) and the new U.S.-focused institutional venture. While the former thrives on inefficiencies abroad, the latter targets compliance, yield-sharing, and enterprise-level adoption.
Tether’s record profits and U.S. expansion plans mark a pivotal shift in stablecoin evolution. As regulatory clarity emerges, the firm is positioning itself to serve both the risk-tolerant emerging market user and the yield-seeking U.S. institution.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
