With record profits of $5.2 billion and holdings of $97.6 billion worth of US Treasury bonds in the first half of 2024, Tether is dominating the global stablecoin market.
According to a July 31 announcement, Tether Holdings reported a record second-quarter net profit of $1.3 billion, bringing its total net profit for the first half of 2024 to $5.2 billion. Tether is also holding $97.6 billion worth of US government bonds.
Its large holdings of US bonds have pushed Tether ahead of Germany, the United Arab Emirates and Australia. Currently, the company ranks 18th in the list of countries that own US bonds and 3rd in buying 3-month bonds, behind only the UK and the Cayman Islands.
Tether said the growth in its US government bond portfolio reflects the growing popularity of USDT, which the company claims is backed 1:1 by the dollar. The company also emphasized its ambition to become the world's largest investor in US Treasury bonds next year.
These figures are based on an audit report from BDO, a leading independent accounting firm in the world, which has confirmed the accuracy of Tether's consolidated financial numbers and reserve reports, reinforcing its integrity. Transparency and trustworthiness of the company.
“At the current rate of USDT adoption, [Tether] sees the potential to become the world's largest investor in US Treasury bonds next year,” said Tether CEO Paolo Ardoino.
USDT grows, Tether reinvests
The announcement also announced that Tether's consolidated net equity - total assets minus total liabilities - reached $11.9 billion as of June 30. During the second quarter, Tether issued approximately $8.3 billion USDT.
Tether's balance sheet shows that the company's equity increased by $520 million in the second quarter. Although the drop in Bitcoin price caused an unrealized loss of $653 million, it was partly offset by an unrealized gain on gold of $165 million.
The metrics allow the company to continue to lead the stablecoin market in terms of stability and liquidity. At the same time, Tether is making strategic strides in expanding into other areas such as Artificial Intelligence, Biotechnology and Telecommunications, according to a Tether representative.
Tether also revealed it is reinvesting a portion of its profits into potential industries such as renewable energy, Bitcoin mining, data, AI infrastructure, peer-to-peer telecommunications technology, neurotechnology and education.
This reinvestment process is carried out while maintaining a significant excess reserve of USD 5.3 billion, to further ensure the stability of the USDT currency.
The stablecoin market is seeing explosive growth, with total payment volume surpassing Visa and reaching more than $4 trillion. Among them, Tether and competitor USD Coin (USDC) are the two leading names.
The combination of stablecoins and tokenized real assets is creating a new wave of investment in US Treasury bonds. Strategy analyst, Tom Wan predicts that, the tokenized US Treasury bond market will reach $3 trillion by the end of 2024.