Tether Posts Record $1.3B Profit as Excess Reserves Soar to $5.2B

Tether's latest attestation statement reveals a net operating profit of $1.3 billion in Q2, as its excess reserves reached a record high of $5.2 billion.

This marks another profitable quarter for the stablecoin issuer, which benefits from scale and interest income generated from its large holdings of U.S. Treasury assets.

Tether's business model is built on holding reserve assets to back its USDT tokens, and in a higher-rate environment, these holdings can generate significant income.

The company's $1.3 billion quarterly profit reflects this model, which has made stablecoin issuers major financial businesses.