Tether posted about $1.5 billion in operating earnings during the second quarter (Q2), driven mainly by returns from its U.S. Treasury investments and repo transactions. By June 30, the company held $187.75 billion in total assets against $183.64 billion in overall liabilities.
The latest reserve attestation from accounting firm BDO showed that Tether held around $4.11 billion in excess of its liabilities. U.S. government-backed securities remained the largest part of its reserve holdings, helping the company generate income during the quarter.
By the end of June, USDT’s circulating supply had climbed to about $184.6 billion. Tether said USDT held a market share of more than 60% across the global stablecoin sector during the period.
Tether Cuts Lending While Increasing Gold Reserves
Tether’s earnings came from returns on short-term U.S. debt holdings and repurchase agreement activities. The company said its reserves remained focused on highly liquid assets, while Treasury holdings continued to make up a major share of its portfolio.
During the quarter, Tether reduced its secured lending by roughly $2.38 billion, marking a 15% decline. The company did not disclose details about the borrowers or collateral tied to the reduced lending activity.
Tether also increased its physical gold reserves by 14 tons, bringing its total gold holdings to more than 146 tons. Paolo Ardoino, Chief Executive Officer of Tether, said the company’s reserve strategy remained resilient despite price swings in the Bitcoin and gold markets while ensuring USDT stayed fully backed.
Tether Maintains Diversified Reserve Portfolio Strategy
The stablecoin issuer adjusted its reserve mix by reducing secured loans and increasing its physical gold holdings. Its Bitcoin holdings were valued at about $5.8 billion as of the end of June.
Tether said its portfolio remained stable despite price swings in the Bitcoin and gold markets. The company continued to hold assets beyond cash-equivalent reserves, including gold and Bitcoin.
Short-term U.S. government securities and repurchase agreements remain common reserve assets among major stablecoin issuers. Tether’s reserve structure has continued to maintain a strong focus on government-backed securities and related instruments.
