Tether reported a $1.5 billion profit for the second quarter of 2024, driven largely by gains on its gold and Treasury holdings. The company also said the supply of its USDT stablecoin grew during the period, and its gold reserves increased to 146 metric tons.
How Tether made the profit
The $1.5 billion profit came from the company's reserve assets, which include U.S. Treasuries, repo agreements, and gold. Tether did not break out the exact contribution from each asset class, but noted that the profit was generated from the performance of its reserves. The company has been under scrutiny for years over the composition and transparency of its backing, and this quarter's profit may help address some of those concerns.
What backs USDT
Tether's stablecoin, USDT, is backed by a mix of assets. According to the company's latest attestation, the reserves include U.S. Treasury bills, cash and cash equivalents, repo agreements, and gold. The gold holdings now exceed 146 metric tons, up from previous quarters. Tether has said it holds gold as a long-term store of value to diversify its backing.
Growth in USDT supply
The supply of USDT increased during Q2, though Tether did not provide a specific figure. The stablecoin's market capitalization has been rising steadily, reflecting demand from crypto traders and users in emerging markets. Tether remains the largest stablecoin by market cap, with a circulating supply of over 110 billion tokens as of mid-2024.
The company's next quarterly attestation is expected in the coming weeks, which will provide more detail on the exact composition of its reserves and any changes in USDT supply.
