Stablecoin issuer Tether had another record breaking first half of the financial year, and now owns more US government debt than major countries.
In an attestation report released on Wednesday, the firm behind the USDT stablecoin disclosed a record $5.2 billion in profit generated in the first half of 2024, with net operating profit of $1.3 billion in the second quarter.
Tether’s direct and indirect ownership of US Treasuries now exceeds $97.6 billion — an all-time high for the firm, which puts its exposure above Germany, the United Arab Emirates, and Australia.
Tether invested part of its profits back into strategic ecosystem projects, but maintained its excess reserves at $5.33 billion. Tether CEO Paolo Ardoino said the decision to grow its excess reserves was a deliberate choice to further protect USDC’s global user base.
“The $5.33 billion could have been distributed as dividends to the shareholders. They weren’t,” said Ardoino on X, adding that “keeping a significant part of our profits in the company is our way to support our users and thank them for the trust they place in us every single day.”
Tether’s significant financial position is comparable to the performance of some of the world’s most valuable companies, despite the stablecoin issuer having an employee base of less than 100 people.
It commands 70% of the stablecoin market, despite choosing to steer clear of setting up shop in the US. In fact, according to Austin Campbell, the former chief risk officer at Paxos, it was this decision that contributed to Tether’s success.
“Regulators have been their own worst enemies [insofar as] they have inadvertently handed Tether a monopoly through their actions,” Campbell said.
