🌎 Tether Reports Record $5.2 Billion Net Profit in First Half of 2024

USDT issuer Tether announced net profits of $1.3 billion in the second quarter of the year, adding to the $4.5 billion generated in Q1, setting a new record.

Tether’s second quarterly attestation indicated that the company achieved $5.2 billion in net profits for the first half of 2024. According to the press release, yield-bearing investments like U.S. Treasuries and reserves have been the primary sources of Tether’s profits.

The digital payment giant has also reallocated its balance sheet into investment pools such as Bitcoin mining, peer-to-peer texting provider Keet, and decentralized artificial intelligence data centers.

BDO, an independent accounting firm, has been engaged by Tether to enhance confidence in its operations. However, critics argue that BDO-backed attestations do not replace full reserve audits. The New York Attorney General mandated Tether to provide regular financial reports as part of an $18.5 million settlement, citing that the company misled the public regarding USDT’s reserves and underlying assets.

USDT remains the largest U.S. dollar-pegged stablecoin globally, boasting a market cap of $114 billion, significantly surpassing competitors like Circle’s USD Coin. While Tether reportedly focuses on emerging markets in Central and Southern America, USDT’s future in Europe and North America remains uncertain.

The European Union’s introduction of the Markets in Crypto Assets (MiCA) framework and impending stablecoin regulations in the U.S. could see other stablecoin issuers competing with Tether for market share.

Circle was the first company to secure a stablecoin provider license in Europe and plans to go public in the U.S., aiming to become the first stablecoin issuer to do so on American soil.