Tether Reports Record Profit

Leading stablecoin firm Tether released its latest quarterly attestation on Wednesday, reporting a record net profit of $5.2 billion for the first half of 2024.

The company achieved a net operating profit of $1.3 billion in the second quarter, driven by yield-bearing investments and reserves, according to its press release. The attestation was performed by BDO, a global independent accounting firm.

Tether issues the largest stablecoin, USDT, which has a market capitalization of nearly $115 billion. The firm has thrived in the post-COVID inflationary environment and the subsequent raised interest rates aimed at stabilizing an overheated economy.

“Tether Group continues to demonstrate its financial strengths thanks to a strong and persistent revenue base from traditional asset-class investments (mainly U.S. Treasuries),” the firm stated.

Tether has been reinvesting its profits in various initiatives including decentralized AI, Bitcoin mining, and a peer-to-peer messaging platform called Keet. The company has experienced increasing profits every year since at least 2022.

USDT, a stablecoin claimed to be backed 1:1 by U.S. dollars or dollar equivalents, has faced controversy due to the absence of an official audit of its reserves. In February 2021, the New York Attorney General mandated the firm to conduct quarterly attestations and imposed an $18.5 million settlement for misrepresenting the stablecoin’s backing for several years.