Key Takeaways
- Tether Attestation Report: Q2 profit hit $4.9B, fueled by Treasury holdings and Bitcoin & gold gains.
- $127B in U.S. Treasuries now places it among the top sovereign debt holders, ahead of South Korea
- USDT supply grew by $20B YTD to $157B, securing its 61% stablecoin market dominance.
- Regulators Take Note: The GENIUS Act and ECB warnings highlight Tether’s visible influence.
Table of Contents
The Stablecoin That Ate Wall Street
The latest Tether Attestation Report looks like a hedge fund investor’s dream come true. The company behind the well-known USDT, one of the crypto world’s dollar substitutes, disclosed Q2 profit of $4.9 billion primarily due to its growing portfolio of U.S. Treasuries ($127B) and mark-to-market (M2M) gains on Bitcoin (BTC) and gold. To put this in context, Tether had more quarterly profits than Goldman Sachs.
“As regulators formalize frameworks for digital dollars, Tether stands as a live, proven model of what stablecoin innovation can achieve: transparency, resilience, and massive global reach. USD₮ is helping billions access the stability of the U.S. dollar, and that mission has never been more urgent or more relevant.” - Paolo Ardoino, CEO of TetherThe Golden goal: The USDT issuer now owns more Treasuries than most countries. Tether’s $127B stack is larger than South Korea’s and on par with Saudi Arabia’s, making it a de facto participant in the global debt market.
The Case for Why Governments Are Paying Attention
The Tether Attestation Report shows that the company’s expansion has developed alongside the emergence of shadow dollarization (or the so-called “de-dollarization”), where nation-states and individuals are adopting stablecoins as alternatives to banking systems. USDt is now found in excess of 150 countries (and growing), predominantly in low local currency or highly-controlled capital regions. To this point:
- The United States has passed the GENIUS Act in order to regulate stablecoins, in effect recognizing Tether’s model and legitimizing that system.
- The European Central Bank (ECB) is worried about “dollar dominance,” whereas EU stablecoins develop at a slower pace – for now.
- Competitors like Circle (USDC issuer) and PayPal moved quickly to provide yields, while private stablecoin initiatives connected to Trump launched.
Despite all of these competitive pressures, there seems to have been little effect on Tether’s market dominance. They have a stated reserve profile that is still over 80% cash and Treasuries, providing a sense of stability. They look now like a Federal Reserve of crypto.
The Bitcoin Bet and Reinvention
Beyond Treasuries, Tether’s $2.6B in Q2 gains came from Bitcoin and gold, a hedge against dollar debasement. It’s also funneling profits into:
- AI and renewables (through its XXI Capital arm).
- Crypto infrastructure (like the Rumble Wallet).
- U.S. projects ($4B deployed domestically).
This diversification suggests a broader ambition: to be more than a stablecoin issuer, and instead become a crypto-native BlackRock
Too Big to Ignore
The Tether Attestation Report highlights an outstanding performance. A venture that started as an obscure niche crypto tool now crosses all boundaries (sovereign debt markets, monetary policy, global trade). As regulators are torn between oversight, one thing is clear: stablecoins are no longer an aspect of finance – they are changing the rules.
Final Thought: When will Tether’s Treasury holdings surpass Russia’s? With the crypto investments booming now, it might be a matter of time.
For more Tether-related stories, read: Tether.AI Launches Decentralized AI Platform with Native Bitcoin, USDT Payments
