"Big Hit with US Treasury Interest"...Tether, Q2 Operating Profit $1.5 Billion

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Tether posted a net operating profit of $1.5 billion in the second quarter. Interest income from US Treasury bonds drove the performance.

According to Cointelegraph on July 31 (local time), Tether announced in its latest quarterly reserve attestation report that its net operating profit for Q2 was recorded at $1.5 billion. Interest income from US Treasury bonds and repurchase agreements (repos), which are short-term loans collateralized by government securities, was the main source of revenue.

As of June 30, Tether's assets exceeded its liabilities by $4.11 billion. With the excess reserves surpassing $4.1 billion, the structure where the assets backing USDT exceed liabilities was maintained.

USDT's circulating supply increased by $446 million in Q2, reaching $184.6 billion. The supply grew even amidst a contraction in the stablecoin market. Tether maintained a market share of over 60% of the global stablecoin market.

The total stablecoin market size was estimated at approximately $307 billion as of July 31. Tether is considered one of the largest institutional holders of US Treasury bonds in the world. High short-term interest rates boosted returns from US Treasury bonds and cash equivalents.

Tether's Q2 performance demonstrates that its US Treasury-centric reserve management has become a core revenue base. The increase in USDT supply and $4.11 billion in excess reserves also supported its market dominance.

[Key Article Summary]

-Tether recorded a net operating profit of $1.5 billion in Q2, driven by interest income from US Treasury bonds and repurchase agreements.

-USDT's circulating supply increased by $446 million, totaling $184.6 billion.

-Tether's excess reserves amounted to $4.11 billion, and its stablecoin market share exceeded 60%.

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