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Tether's second-quarter profit came in at $1.5 billion, driven by US Treasury holdings in a period when the stablecoin market weakened and crypto sector pressure continued.
USDT supply still rose through the quarter, and the company's reserve surplus grew to $4.11 billion. The result is strong on its headline; what complicates it is the environment it arrived in.
The Treasury trade underpinning Tether's income Tether issues USDT and holds reserves in US Treasuries, earning yield on assets it owes no interest on. When USDT supply expands, reserve holdings grow with it.
At current Treasury yield levels, that compounding produces meaningful income, and the $1.5 billion Q2 figure reflects the mechanism operating at scale.
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