Tether Nets $5B Profits in 2024, USDC Trading Volume Surges 48% in a Month

Stablecoin season is in bloom as USDT and USDC experience an uptick in usage from users.

USDT issuer Tether reported $5.2 billion of net profits for the first half of the year, marking a new record for the stablecoin company. Q2 drew in a net operating profit of $1.3 billion, which is Tether's "best result ever" according to the firm.

Additionally, Tether reported an "unprecedented achievement" in ownership of US treasuries, which surpassed $97.6 billion and also marked a new high.

"This achievement brings Tether’s exposure to Treasuries above Germany, the United Arab Emirates, and Australia," Tether stated.

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Tether is now positioned at 18th in the rankings of countries owning US debt and third in purchases of 3-month US treasuries after the UK and the Cayman Islands.

Due to Bitcoin prices dropping, group equity increased by $520 million in Q2 but the group accounted $653 million of unrealized PnL, which was offset by $165 million of unrealized PnL from the positive performance of gold.

More than $8.3 billion in USDT was issued in Q2 while reserves for the token in circulation amounted to over $118 billion. Tether's own equity reached $11.9 billion.

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“Tether has achieved an impressive and unmatched financial strength enabling it to continue leading the stablecoin industry in stability and liquidity as well as to bring its expertise across different areas such as Artificial Intelligence, Biotech, and Telecommunications” said Paolo Ardoino, CEO of Tether.

Meanwhile, competitor Circle saw its stablecoin, USDC, surge in July, following new European rules for digital assets.

CCData shows that USDC pairs' trading volume on centralized exchanges grew 48% to $135 billion at the end of July with its market cap rising 5.4% to $33.6 billion.

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By comparison, USDT's market cap grew by 1.6% over the same period to $114 billion.

On 1 July, Circle became the first stablecoin issuer to be approved under the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework.

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