Tether (USDT) Records Over US$5B in Net Profit for H1 2024, Dominates the US Market

The largest stablecoin issuer Tether (USDT), has recorded over $5B (AU$7.65B) in net profit for the first half of 2024, the company said in a press release.

Stablecoin issuer Tether has recorded over US$5 billion in net profit for the first half of 2024.

The company reported a net profit of US$5.2 billion during the first half and over US$1.3 billion in the second quarter of the year, with a chunk of those profits reinvested in “strategic projects” to support the USDT ecosystem.

Over $8.3 billion in USDT was issued in the second quarter.

Tether Taps Former Chainalysis Economist to Boost Transparency in Stablecoin Operations

Moonrock Capital founder and CEO Simon Dedic shared a screenshot breaking down Tether’s reserves by category, revealing over $80 billion in US Treasury Bills alone.

The stablecoin market saw a notable surge by the beginning of 2024, reaching US$160 billion — a figure not seen since Q2 of 2022 — shortly after the approval of spot Bitcoin ETFs and the resurgence of the crypto market.

Tether is the largest stablecoin issuer with a market capitalisation of over US$114.5 billion.

Tether Falls Short in the European Market

USDT maintains a wide gap against its main competitors like USD Coin (USDC), the second-largest stablecoin with a market capitalization of over US$32 billion.

Tether might dominate the US market but falls short against Circle in Europe. This is mainly because Tether’s Euro-pegged stablecoin, EURT, does not comply with the European Union law requirements, especially under the MiCA framework, which restricts the use and trade of non-compliant stablecoins.

However, EURT has not been banned yet, but Tether has had several issues in getting the respective licenses to become Electronic Money Institutions (EMIs). Even so, investors are shifting away from non-compliant stablecoins to use fully regulated ones.

This has caused EURT’s market value to plunge over 6% in the last month, with its market capitalisation falling to US$31 million, according to data from DefiLlama.

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