Tether's $1.5B Q2 Haul Proves Treasuries Still Print Money Better Than Memecoins 🏦

Stablecoin issuer Tether reported $1.5 billion in net operating profit for the second quarter, driven primarily by interest income from its US Treasury portfolio and repurchase agreements, according to the company's quarterly attestation released Friday. The result marked a nearly 50% increase against Q1 2026.

Tether said it held approximately $187.75 billion in assets against roughly $183.64 billion in liabilities as of June 30, leaving a reserve surplus of about $4.11 billion. The circulating supply of USDT ($USDT) reached approximately $184.6 billion at quarter's end, up $446 million from the end of March, allowing Tether to maintain more than 60% of the global stablecoin market even as the broader segment contracted. The total stablecoin market was valued at roughly $307 billion as of Friday, according to DeFiLlama data.

"Without a doubt, Tether continues to deliver financial inclusion in the developing world like no other company or organization ever has in the history of humanity; we're all incredibly proud of this achievement," CEO Paolo Ardoino wrote on X.

The company said most assets backing USDT remained invested in short-term US Treasuries, repurchase agreements, and other highly liquid government-backed instruments, which generated the bulk of the quarter's operating profit. Tether also reduced its secured lending exposure by approximately $2.38 billion, or 15%, during the period and added 14 metric tons of physical gold, raising its holdings to more than 146 metric tons. "These results show that Tether has the liquidity, discipline and scale to remain resilient across market cycles while continuing to serve hundreds of millions of users around the world," Ardoino said.

In related industry developments, Circle received a limited purpose trust charter from the New York Department of Financial Services, allowing the USDC issuer to operate as Circle New York Trust and building on the BitLicense it received in 2015. "Earning a New York trust charter has been a longstanding objective for Circle," CEO Jeremy Allaire said.

Separately, Coinbase reported $1.22 billion in second-quarter revenue on Thursday, down 14% from the previous quarter, with a net loss of $359 million. Shares fell roughly 5% in after-hours trading after the company missed earnings estimates of $1.29 billion, with total crypto spot trading volume declining more than 20% from the prior quarter.