Tether reported a profit of $4.9 billion in Q2 2025, affirming its position as stablecoins become a dominant trend due to the new legal framework.
Tether announced outstanding financial results in Q2 2025, confirming its leading position as stablecoins are gradually becoming the dominant trend backed by major institutions and increasingly clear legal frameworks. According to the latest financial report, the world's largest stablecoin issuer achieved a net profit of $4.9 billion, a staggering increase of 277% compared to the same period last year. For the first six months of 2025, Tether's profit is $5.7 billion, an increase of 9.6% compared to the same period in 2024.
This outcome is largely thanks to Tether's unique business model, as the USDt stablecoin is primarily backed by U.S. Treasury bonds and cash-equivalent assets. In the last quarter, Tether raised its holdings of Treasury bonds to $127 billion, surpassing South Korea and becoming the 18th largest creditor of the U.S. government.
According to updated data from DefiLlama, the USDt stablecoin is dominating the market with a market capitalization of $164.5 billion, accounting for a market share of up to 61.7%. As of June 30, Tether's total assets reached $162.6 billion, significantly exceeding total liabilities of $157.1 billion.
The strong development of Tether occurs amid competitors that are also accelerating their growth. Notably, Circle, the issuer of the U.S.-based USDC stablecoin, had a successful IPO last June, with its stock price skyrocketing from $31 to $186.83 as of now. PayPal, a giant in the fintech sector, is also joining the competition by announcing a yield of 3.7% for its stablecoin. Even political-related projects like World Liberty Financial have introduced their own stablecoin.
The stablecoin market is strongly driven by a favorable regulatory environment. The signing of the GENIUS Act by President Donald Trump last July established the first federal legal framework specifically for stablecoins in the U.S., both legalizing and encouraging innovation in this field. This move quickly attracted attention from the international community.
Immediately, an advisor from the European Central Bank (ECB) warned of the risk of a dominating digital USD if the EU does not take timely action. In response to this situation, an alliance consisting of Deutsche Bank, Galaxy, and Flow Traders quickly launched a Euro-pegged stablecoin on the Ethereum blockchain, opening up new competition on a global scale.
