Tether Announces Quarterly Profit of $4.9 Billion, CEO Hints at Americans-Focused Business
In a significant move, Tether, the stablecoin giant, has announced plans to launch a new institutional stablecoin specifically designed for the U.S. market in Q4 2025. This new stablecoin aims to cater to high-volume payments, interbank settlements, and crypto trading, differentiating it from their existing USDT product, which targets emerging markets.
Tether's strong financial position has enabled this venture. The company has generated a staggering $5.7 billion in the first six months of 2022, largely through interest income on its $127 billion in U.S. Treasury holdings. This reserve strategy, which also forms the backbone of Tether's business model, has proven to be highly profitable.
The company's reserves are predominantly held in U.S. Treasury bills (around 55%) and commercial paper (less than 29%), with other components including cash, corporate bonds, secured loans, and precious metals. Bitcoin and precious metals contribute to reserve gains but are a smaller share compared to U.S. Treasuries. In Q2 2022, Tether reported approximately $1.8 billion in mark-to-market gains from Bitcoin and gold holdings.
Twenty One Capital, a Bitcoin treasury firm, has recently become the world's third largest Bitcoin treasury firm since it began accumulating the asset in May, following a $5,800 Bitcoin investment from Tether earlier this week.
The passage of the GENIUS Act provides a pathway to legality for firms issuing dollar-pegged tokens like Tether. However, questions remain over how Tether will comply with U.S. rules, particularly in light of suggestions by JPMorgan analysts in February that Tether may be forced to sell Bitcoin to meet the framework's requirements for reserves.
Tether's CEO, Paolo Ardoino, has been vocal about these matters, calling the analysts "salty." Ardoino also teased the new U.S. venture, stating that it will provide secure, on-chain access to U.S. dollar liquidity at scale.
As of Thursday, Tether's market capitalization stood around $163 billion, with $8.9 billion worth of Bitcoin and $8.7 billion worth of precious metals backing the stablecoin. Saudi Arabia held the same dollar-value amount of Treasury securities in May, according to U.S. Treasury Department data.
[1] Tether's Q2 2022 Report
[2] Tether's Reserve Composition
[3] Tether's Q1 2022 Report
[5] Tether's Profit Announcement
[1] Tether's Q2 2022 report revealed approximately $1.8 billion in mark-to-market gains from Bitcoin and gold holdings.
[2] The company's reserves, which form the backbone of Tether's business model, are predominantly held in U.S. Treasury bills (around 55%) and commercial paper (less than 29%), with other components including cash, corporate bonds, secured loans, and precious metals.
[3] In the first six months of 2022, Tether generated a staggering $5.7 billion, largely through interest income on its $127 billion in U.S. Treasury holdings, as per Tether's Q1 2022 report.
[4] Following a $5,800 Bitcoin investment from Tether earlier this week, Twenty One Capital, a Bitcoin treasury firm, has recently become the world's third largest Bitcoin treasury firm.
[5] In a significant business move, Tether announced plans to launch a new institutional stablecoin specifically designed for the U.S. market in Q4 2025, catering to high-volume payments, interbank settlements, and crypto trading, as announced in Tether's Profit Announcement.
