Tether reported another strong quarter, with stablecoins continuing to gain traction as the regulatory environment in the U.S. becomes increasingly clear. The company stated that its profits for the second quarter of 2025 reached $4.9 billion, a 277% increase compared to the same period last year.
Tether is the creator of USDt (USDT), a stablecoin pegged to the U.S. dollar, backed by U.S. Treasury bonds and cash equivalents. According to DefiLlama, USDt continues to dominate the stablecoin market, holding a 61.7% market share with a market capitalization of $164.5 billion.
As of June 30, Tether had $162.6 billion in assets and $157.1 billion in liabilities, most of which are related to token issuance.
The company expanded its holdings of U.S. Treasury bonds to $127 billion this quarter, surpassing South Korea to become the 18th largest holder of U.S. debt instruments.
In the first six months of 2025, Tether's profits amounted to $5.7 billion, an increase of 9.6% compared to $5.2 billion in the same period of 2024.
As one of the largest holders of U.S. Treasury bonds, Tether's position comes as U.S. policymakers take decisive measures through the GENIUS Act to solidify the dollar's global leadership in digital form.
Tether's competitors are taking action.
Tether's competitors are also active. The American company Circle and the founders of USDC conducted an initial public offering in June 2025. Its stock quickly rose from $31 per share to $186.83.
Fintech giant PayPal announced in April 2025 that its stablecoin offers a yield of 3.7%. One of former President Trump's crypto projects, World Liberty Financial, launched its own stablecoin and invested $10 million in Falcon Finance to develop the blockchain infrastructure for such tokens.
Trump signed the GENIUS Act into law in July, making it the first legislation in the U.S. targeting stablecoins and their issuers.
European Central Bank advisor Jürgen Schaaf stated that without common rules to manage stablecoins, the EU may face the risk of dollar dominance. Deutsche Bank, Galaxy, and Flow Traders launched a euro-backed stablecoin on the Ethereum blockchain on Thursday.
Magazine: The clash between Bitcoin and stablecoins is imminent, with the GENIUS Act approaching.
