Tether, the stablecoin issuer, has reported a significant profit of $5.2 billion in the first half of 2024. This news comes as the company’s U.S. debt holdings have reached $97.6 billion, surpassing countries like Germany, the United Arab Emirates, and Australia.
In addition to its profitable first half of the year, Tether has also seen its market cap for its flagship cryptocurrency, USDT, reach new all-time highs. The company reported $1.3 billion in net operating profits for the second quarter alone, with a portion of these profits being reinvested in strategic projects.
According to the latest quarterly attestation signed by accounting firm BDO Italy, Tether International Limited and Tether Limited disclosed $118.4 billion of assets in reserve against $113.1 billion in liabilities as of June 30. This means that there are $5.3 billion in excess reserves backing Tether’s stablecoins.
Tether Investments, a separate division from the stablecoin business, has also shown strong performance with a net equity value of $6.2 billion. This entity manages Tether’s investments in bitcoin mining, artificial intelligence, and other ventures.
USDT, Tether’s stablecoin, plays a crucial role in the cryptocurrency market for trading and is becoming increasingly popular in developing countries as a way to access U.S. dollars. With a market value of $114 billion, up from $91 billion earlier this year, USDT is currently the most popular stablecoin.
Despite facing scrutiny in the past for the transparency of its reserves, Tether has received support from Howard Lutnick, chairman and CEO of Cantor Fitzgerald, which manages a portion of Tether’s assets. Lutnick has stated that Tether indeed has the funds to back its stablecoins.
Overall, Tether’s impressive profits and growing investments highlight the company’s continued success in the cryptocurrency market. As the demand for stablecoins like USDT grows, Tether remains a key player in providing access to digital assets and U.S. dollars for users around the world.