USDT issuer Tether disclosed net profits of $1.3 billion in the second quarter, adding to the $4.5 billion generated in Q1 to set a new record.
Tether’s (USDT) second quarterly attestation stated the company reached $5.2 billion in net profits for the first half of 2024. According to the press release, which cites BDO-conducted assurance opinions, yield-bearing investments like U.S. Treasuries and reserves have comprised most of Tether’s profits so far.
The digital payment giant has redeployed its balance sheet into investment pools like Bitcoin (BTC) mining, peer-to-peer texting provider Keet, and decentralized artificial intelligence data centers.
BDO is an independent accounting firm selected by USDT’s issuer to bolster confidence in its operations. However, skeptics argue that BDO-backed attestations are not a substitute for full reserve audits.
The New York Attorney General ordered Tether to provide regular financial reports as part of an $18.5 million settlement, stating the company misled the public over USDT’s reserves and underlying assets.
Tether’s dominance threatened
USDT is the largest U.S. dollar-pegged stablecoin globally, with its $114 billion market cap far exceeding competitors like Circle’s USD Coin (USDC). While Tether reportedly focuses on emerging markets in Central and Southern America, USDT’s future in Europe and North America seems uncertain.
The introduction of the Markets in Crypto Assets (MiCA) framework by the European Union and looming stablecoin regulations in the U.S. mean other stablecoin issuers could contest Tether for market share.
Circle was the first company out of the gates in Europe, claiming the bloc’s first stablecoin provider license. The firm also plans to go public in America, aiming to become the first stablecoin issuer to do so on U.S. soil.
