Tether profits hit $5.2b in H1 2024, new record

USDT issuer Tether reported a net profit of $1.3 billion in the second quarter of the year, setting a new record on top of the $4.5 billion it earned in the first quarter.

According to Tether’s (USDT) second-quarter attestation report, the company achieved a net profit of $5.2 billion in the first half of 2024. Yield-generating investments such as U.S. Treasury bonds and reserves have accounted for the majority of Tether’s profits thus far, according to the press release, which cited assurance opinions conducted by BDO.

The digital payments giant has also redistributed its balance sheet into investment pools such as Bitcoin (BTC) mining, peer-to-peer messaging provider Keet, and decentralized AI data centers.

BDO is an independent accounting firm chosen by the issuer of USDT to increase confidence in its operations. Skeptics still regularly point out that BDO-backed attestation is not a substitute for full reserve audits. The New York Attorney General ordered Tether to submit regular financial reports as part of an $18.5 million settlement, stating that the company misled the public about USDT’s reserves and underlying assets.

Tether’s dominance is under threat

USDT is by far the world’s largest US dollar-pegged stablecoin. The token’s $114 billion market cap dwarfs rivals like Circle’s USD Coin (USDC). While Tether is reportedly focused on emerging markets in Central and South America, USDT’s future in Europe and North America appears uncertain.

The European Union’s introduction of its Markets in Crypto Asset (MiCA) framework and upcoming stablecoin regulations in the US mean that other stablecoin issuers could compete with Tether for market share.

Circle became the first company to launch in Europe and received the blockchain’s first stablecoin issuer license. The company also plans to go public in the United States, becoming the first stablecoin issuer to do so on US soil.