Tether reported a $4.9 billion profit for Q2 2025, marking a 277% year-over-year increase, fueled by the growing mainstream adoption of stablecoins and increasing regulatory clarity, particularly in the United States. This performance contributed to a total profit of $5.7 billion for the first six months of 2025, a 9.6% rise compared to the $5.2 billion recorded during the same period in 2024.
The company, creator of the USDt stablecoin, which is pegged to the U.S. dollar and backed by U.S. Treasurys and cash equivalents, continues to dominate the stablecoin market with 61.7% of the total market value and a market capitalization of $164.5 billion. As of June 30, 2025, Tether reported $162.6 billion in assets and $157.1 billion in liabilities, with the majority of liabilities related to token issuance.
Tether has also significantly increased its holdings of U.S. Treasurys, reaching $127 billion and becoming the 18th-largest holder of these debt instruments, surpassing South Korea. According to Tether, its position as a major holder of U.S. Treasurys aligns with the U.S. government’s efforts to reinforce the dollar’s global leadership in the digital realm through initiatives like the GENIUS Act, which President Trump signed into law in July.
Meanwhile, Tether’s competitors are also making significant strides. Circle, the issuer of USDC, completed its initial public offering (IPO) in June 2025, debuting at $31 per share. The stock price has since surged to $186.83. PayPal announced a 3.7% yield on its stablecoin in April 2025. World Liberty Financial, associated with Donald Trump, has launched its own stablecoin and invested $10 million in Falcon Finance to build blockchain infrastructure. Additionally, Deutsche Bank, Galaxy, and Flow Traders introduced a EURO-backed stablecoin on the Ethereum blockchain on Thursday.
Jürgen Schaaf, an advisor to the European Central Bank, highlighted the importance of common rules governing stablecoins in the EU to avoid dollar dominance.
