Tether Reports Record Profit as Stablecoin Market Grows Amid Regulatory Clarity
By Crypto World News | July 24, 2025
Stablecoin issuer Tether reported significant quarterly profits, highlighting the growing traction of digital dollar reserves as the U.S. moves towards clearer regulatory frameworks. The company announced a $4.9 billion profit for the second quarter of 2025, marking a substantial 277% increase compared to the same period in 2024.
Tether (USDT), pegged 1:1 to the U.S. dollar and backed by U.S. Treasuries and high-quality cash equivalents, remains dominant. According to DefiLlama data cited by the company, USDT represents 61.7% of the total stablecoin market, with a market capitalization exceeding $164.5 billion.
Financially, Tether reported assets worth $162.6 billion on June 30, comprising primarily cash, treasuries, and loan-to-issuers receivables. Correspondingly, its liabilities reached $157.1 billion, most notably linked to the creation and redemption of USDT tokens.
A key financial milestone during Q2 involved significantly increased holdings of U.S. Treasuries, expanding Tether’s position within this market. As of June 30, the company held Treasury exposures worth $127 billion, surpassing South Korea to become the 18th-largest holder of U.S. debt securities.
Tether’s robust performance demonstrates its role in the evolving stablecoin ecosystem, even as its major competitor Circle’s USDC recently executed a highly successful Initial Public Offering (IPO).
On the competitive front, Circle (USDC) went public in June 2025, with stock trading at $186.83 shortly after its market debut. Meanwhile, established financial players also compete, with PayPal offering a 3.7% yield on its stablecoin, while World Liberty Financial, another venture associated with former President Donald Trump, has launched a stablecoin and invested in blockchain infrastructure development.
The formal entry of Congress into stablecoin regulation occurred months after the passage of the groundbreaking GENIUS Act (Global Expansion of the Novel and Efficient Understanding of Sustainable Stablecoins) by President Trump in July. The Act aims to be the first comprehensive U.S. law addressing stablecoins directly.
Continuing the regulatory narrative, officials from the European Union face growing concern. Adviser Jürgen Schaaf of the ECB recently warned that Europe risks ceding dollar dominance in digital assets without establishing its own regulatory framework. In response, Deutsche Bank, Galaxy Digital, and Flow Traders jointly launched a EURO-backed stablecoin on the Ethereum network.
Tether’s demonstrated profitability signals sustained demand and confidence in its stablecoin technology and the unique niche it occupies within the cryptocurrency market.
Related Opportunities
Crypto Biz Newsletter: Subscription Form
