Outside Source
USDT issuer Tether disclosed net profits of $1.3 billion in the second quarter of the year, adding to the $4.5 billion generated in Q1 to set a new record.
Tether’s (USDT) second quarterly attestation reported that the company hit $5.2 billion in net profits for the first half of 2024. According to the press release, which cites BDO-conducted assurance opinions, yield-bearing investments like U.S. Treasuries and reserves have comprised most of Tether’s profits so far.
The digital payment giant has also redeployed its balance sheet into investment pools like Bitcoin (BTC) mining, peer-to-peer texting provider Keet, and decentralized artificial intelligence data centers.
BDO is an independent accounting firm tapped by USDT’s issuer to bolster confidence in its operations. Skeptics still regularly point out that BDO-backed attestations are not a substitute for full reserve audits. The New York Attorney General ordered Tether to provide regular financial reports as part of an $18.5 million settlement, stating the company misled the public over USDT’s reserves and underlying assets.
Tether’s dominance threatened
USDT is by far the largest U.S. dollar-pegged stablecoin in the world. The token’s $114 billion market cap dwarfs competitors like Circle’s USD Coin (USDC). While Tether reportedly focuses on emerging markets in Central and Southern America, USDT’s future in Europe and North America seems uncertain.
The introduction of the Markets in Crypto Assets (MiCA) framework by the European Union and looming stablecoin regulations in the U.S. means other stablecoin issuers could jockey Tether for market share.
Circle was the first company out of the gates in Europe and claimed the bloc’s first stablecoin provider license. The firm also plans to go public in America and become the first stablecoin issuer to do so on U.S. soil.
This article first appeared at crypto.news
