Tether's Initial Half-Year Profits Skyrocket to a Historic $5.2 Billion
In a remarkable turn of events, digital currency issuer Tether has surged to become the 18th largest holder of U.S. Treasury securities. The company now holds approximately $127 billion in U.S. government bonds, surpassing countries like South Korea and Germany in U.S. debt ownership.
The significant rise in Tether’s U.S. Treasury holdings reflects its financial performance and strategic portfolio diversification efforts.
Financial Performance
Tether reported a 277% profit surge in Q2 2025, reaching $4.9 billion, driven primarily by an $8 billion increase in U.S. Treasury investments. This impressive earnings growth is a testament to Tether's strong earnings fueled by high-grade asset investments.
Portfolio Diversification and Strategy
Tether has expanded its U.S. Treasury exposure deliberately, positioning itself among the top sovereign-level holders. This move is aimed at strengthening the dollar peg of its stablecoin (USDT) by backing it with highly liquid, secure U.S. government debt. The company's holdings include $105.5 billion in direct Treasury securities and an additional $21.3 billion through indirect holdings.
Market Impact and Credibility
This large Treasury position enhances USDT's credibility and stablecoin stability, reinforcing market trust. The growth also signals how stablecoin issuers increasingly influence global finance, rivaling traditional institutional investors and sovereign nations.
Liquidity and Capital Buffer
Tether maintains a shareholder equity reserve of around $5.47 billion to cushion against shocks, ensuring operational resilience alongside its rapidly growing digital currency supply (USDT circulating supply rose to over $157 billion by mid-2025).
New Initiatives and Investments
Tether has also made strategic investments in various sectors this year, including sustainable energy, P2P telecommunications technology, education, and long-term proprietary investments. However, these are not considered part of its reserves.
The company has also launched Alloy by Tether (aUSDT), a new category of assets tracked by the US dollar and over-collateralized by Tether Gold (XAUT). Additionally, Tether secured a $100 million placement into Bitcoin mining company Bitdeer, with potential for an additional $50 million investment. Tether also invested $200 million in biotech startup Blackrock Neurotech, taking a majority stake.
Looking Ahead
Tether expects to rise to the top of the list in purchases of 3-month U.S. Treasuries within a year. The company's group equity reached a record high of $11.9 billion, demonstrating unmatched financial strength.
Paolo Ardoino, CEO of Tether, commented on the latest report, stating Tether continues to break records with a $5.2 billion net profit for the first half of 2024. The attestation report, conducted by the global independent accounting firm BDO, reaffirmed the accuracy of Tether's Consolidated Financial Figures and Reserves Report.
[1] CoinDesk (2025). Tether Surpasses South Korea, Germany in U.S. Treasury Holdings. [online] Available at: https://www.coindesk.com/business/2025/07/01/tether-surpasses-south-korea-germany-in-u-s-treasury-holdings/
[3] Bloomberg (2025). Tether's U.S. Treasury Holdings Reach All-Time High. [online] Available at: https://www.bloomberg.com/news/articles/2025-06-30/tether-s-u-s-treasury-holdings-reach-all-time-high
[5] Financial Times (2025). Tether's Rise to Top 18th Largest U.S. Treasury Holder. [online] Available at: https://www.ft.com/content/4c56f91a-7834-4184-845e-a8e3932c209f
Read also:
- Deepwater Horizon Oil Spill: BP Faces Record-Breaking Settlement - Dubbed 'Largest Environmental Fine Ever Imposed'
- Lawsuit of Phenomenal Magnitude: FIFA under threat due to Diarra's verdict, accused of player injustice
- Expansion of railway systems, implementation of catenary systems, and combating fires: SNCF adapting to the summer heatwave
- Citizen Thekla Walker, Minister, advises: "Let's focus on our own homes first"
