Tether Releases Earnings Report, Reports US Debt Assets Surpass Germany’s

Stablecoin issuer Tether reported a “record” net profit of $5.2 billion in the first half of the year, as the market value of its cryptocurrency USDT rose to all-time highs.

The company announced that it made a net operating profit of $1.3 billion in the second quarter of the year, with a portion of those profits being invested in “strategic projects.”

According to the latest quarterly filings by accounting firm BDO Italy, the company’s stablecoin issuer arm, Tether International Limited and Tether Limited, reported $118.4 billion in reserve assets against $113.1 billion in liabilities as of June 30. That means Tether has $5.3 billion in excess reserves backing its stablecoins.

The company said the U.S. has $97.6 billion in debt assets, putting it 18th among countries behind Germany, the United Arab Emirates and Australia.

Tether Investments, which was established as a separate division from the stablecoin business to manage the company’s bitcoin (BTC) mining, artificial intelligence and other investments, has a net equity value of $6.2 billion.

Tether’s USDT is a key piece of infrastructure for trading in the crypto market and is increasingly sought after in developing countries as a means to access the US dollar. According to CoinGecko, the token’s market cap has risen to $114 billion from $91 billion at the beginning of the year, and it remains the most popular stablecoin.

Howard Lutnick, president and CEO of Cantor Fitzgerald, the Wall Street investment bank that manages some of Tether’s assets, said Tether does indeed have the assets to back its stablecoins.