Tether Holdings has disclosed a significant $5.7 billion profit for the first half of this year, reflecting a 9.6% increase compared to the same period last year. This strong performance is attributed primarily to consistent growth in its stablecoin operations and strategic investments in US Treasury securities.
The company’s USDt stablecoin continues to dominate the market, commanding a 61.7% share with a market capitalization standing at $164.5 billion. A key driver of profitability has been the expansion of Tether’s holdings of US Treasury bills, which now total $127 billion. This substantial position effectively ranks Tether among the top 20 global sovereign debt holders.
The stablecoin market saw notable developments beyond Tether. Competitor Circle successfully completed a public listing, while fintech giant PayPal introduced a 3.7% annual yield on its Paxos-issued stablecoin (PYUSD). These moves occurred amidst a shifting regulatory landscape, particularly in the US with the passage of the GENIUS Act designed to provide clearer oversight for payment stablecoin issuers.
This enhanced US regulatory clarity is viewed as fostering greater trust and innovation within the sector. Conversely, the European Union faces ongoing challenges in the stablecoin regulatory arena. Highlighting the demand for alternatives to USD-pegged stablecoins, financial institutions including Deutsche Bank recently launched a EURO-backed stablecoin.