Tether’s Quarterly Attestation Reports Record Profits

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

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

Tether issues USDT, the largest stablecoin with a market capitalization nearing $115 billion. The firm has thrived in the post-COVID inflationary environment and the subsequent interest rate hikes intended to stabilize the economy.

In their statement, Tether Group emphasized its financial strengths stemming from a robust revenue base derived from traditional asset-class investments, primarily U.S. Treasuries.

Tether has been reinvesting its profits into various ventures, such as decentralized AI, Bitcoin mining, and a peer-to-peer messaging platform called Keet. The firm has reported growing profits every year since at least 2022.

USDT, which is purportedly backed 1:1 by U.S. dollars or dollar equivalents, has faced controversy due to the lack of an official audit of its reserves. In February 2021, the New York Attorney General mandated the firm to provide quarterly attestations and pay an $18.5 million settlement for misleading claims about the stablecoin’s backing for several years.