Tether, the world’s largest stablecoin agency, has claimed that it made roughly $4.9 billion in earnings for the second quarter of 2025.
USDT, the principle stablecoin issued by Tether, had grown to a market capitalization of over $150 billion by the top of June.
Furthermore, Tether claims that it has grown to be one in every of “the largest holders of US government debt globally.”
Apparently, regardless of the substantial development in Tether’s market capitalization, the quantity of what Tether calls “equity” (the distinction between belongings and liabilities) has been remarkably secure.
Tether’s BTC reserves proceed to develop
As Tether made certain to notice in its announcement, it holds fairly just a few US Treasury payments, representing the only largest class in its reserves.
Tether additionally has substantial “indirect exposure” to US Treasuries by the in a single day reverse repurchase agreements and cash market funds it invests in.
It has additionally continued to develop the worth of bitcoin in its reserves to roughly $8.9 billion from $7.7 billion this quarter.
Equally, it’s elevated the worth of treasured metals within the reserves to $8.7 billion from $6.7 billion.
Secured loans now double Tether’s fairness
Maybe the strangest element in Tether’s reserves, although, is what it calls “secured loans.”
In December 2022, the corporate introduced its intention to eradicate secured loans from its reserves, promising to be rid of them by the top of 2023.
Nonetheless, this discount hasn’t performed out as meant.
In 2023, Tether saved sufficient belongings in what it describes as “equity” to start claiming that the so-called “secured loans” had been now extra reserves, as a result of the fairness was bigger than the quantity of secured loans.
Nonetheless, since then the quantity of secured loans has continued to develop, and the quantity of secured loans is now roughly double the scale of the so-called “equity.”
Protos reached out to Tether for clarification on why its secured loans have continued to develop, regardless of earlier guarantees to eradicate them, but it surely didn’t instantly reply.
