Tether, the leading stablecoin issuer, reported a substantial $4.9 billion profit for Q2 2025, reflecting the growing mainstream acceptance of stablecoins in the decentralized finance () and centralized finance (CeFi) sectors.
This marks a significant 277% increase compared to the same period last year, showcasing Tether’s expanding influence in the digital economy.
In the first half of 2025, Tether’s profits reached $5.7 billion, up 9.6% from $5.2 billion in the first six months of 2024, demonstrating sustained growth amid heightened regulatory scrutiny.
Market Dominance of USDt
According to DefiLlama, USDt continues to dominate the stablecoin landscape, accounting for 61.7% of all stablecoin value with a market cap of $164.5 billion.
Tether disclosed assets totaling $162.6 billion and liabilities of $157.1 billion as of June 30, with most liabilities related to token issuance activities.
Notably, Tether expanded its US Treasurys exposure to $127 billion during the quarter, making it the 18th-largest holder of US debt instruments globally—passing South Korea.
As one of the largest US Treasurys holders, Tether’s strategic position aligns with efforts to reinforce dollar dominance through initiatives like the GENIUS Act.
Competitor Movements and Regulatory Developments
Tether faces increasing competition from firms like Circle, which recently completed an IPO for USDC, whose stock soared from $31 to over $186 post-launch.
PayPal also announced a 3.7% yield on its stablecoin in April 2025, highlighting corporate interest in digital assets within the CeFi space.
Meanwhile, US legislation such as the GENIUS Act aims to regulate stablecoins more effectively, with President Trump signing it into law in July—marking a pivotal step for industry oversight.
European regulators express concerns about dollar dominance without uniform rules for stablecoins, prompting initiatives like Deutsche Bank's euro-backed stablecoin on Ethereum.
Implications for Crypto Ecosystem
The robust profits and expanding asset holdings underscore Tether’s critical role in shaping global digital currency markets amidst evolving regulations and increasing adoption across DeFi and CeFi sectors.
As stablecoins become integral to mainstream finance, their growth could influence dollar supremacy and global monetary stability in the coming years.
