Tether reported another strong quarter as stablecoins gain momentum amid increasing regulatory clarity in the U.S. The company revealed a $4.9 billion profit for Q2 2025, marking a 277% year-over-year increase.

Tether is behind USDT, a U.S. dollar-pegged stablecoin backed by U.S. Treasurys and cash equivalents. According to DefiLlama, USDT remains the dominant stablecoin, representing 61.7% of the market with a capitalization of $164.5 billion at the time of writing.

As of June 30, Tether held $162.6 billion in assets and $157.1 billion in liabilities, largely tied to token issuance. During the quarter, the company boosted its holdings of U.S. Treasurys to $127 billion, surpassing South Korea to become the 18th-largest holder globally.

In the first half of 2025, Tether recorded $5.7 billion in profit, up 9.6% from $5.2 billion in the same period in 2024. The company noted that its growing position in U.S. Treasurys comes at a time when U.S. lawmakers are working to secure the dollar’s global position through legislation like the GENIUS Act.

Tether’s competitors are also ramping up efforts. Circle, the issuer of USDC, went public in June 2025 with an initial share price of $31, which has since climbed to $186.83. PayPal introduced a 3.7% yield on its stablecoin in April, and World Liberty Financial—linked to former President Donald Trump—launched a stablecoin and invested $10 million into blockchain firm Falcon Finance.

Trump signed the GENIUS Act into law in July, marking the first U.S. legislation aimed at regulating stablecoins and their issuers.

Jürgen Schaaf, an adviser to the European Central Bank, warned that the EU risks reinforcing dollar dominance if it fails to adopt unified stablecoin regulations. Meanwhile, Deutsche Bank, Galaxy, and Flow Traders jointly introduced a euro-backed stablecoin on Ethereum this week.

Sources:

https://cointelegraph.com/news/tether-posts-49b-profit-q2-stablecoins-mainstream

https://tether.io/news/tether-q2-2024-attestation-reports-record-breaking-5-2-billion-profit-in-first-half-of-2024-highest-treasury-bill-ownership-ever-largest-ever-group-consolidated-equity-at-almost-12-billion/

https://tether.io/news/tether-issues-20b-in-usdt-ytd-becomes-one-of-largest-u-s-debt-holders-with-127b-in-treasuries-net-profit-4-9b-in-q2-2025-attestation-report/

https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt_table5.html

https://defillama.com/stablecoins