MILESTONE | USDT Issuer, Tether, Sees ~10% Growth in Profits in H1 2025

In Q2 2025, Tether reported a net profit of ~$4.9 billion. That brings the first half (H1) 2025 total to ~$5.7 billion.

Of the $5.7B, $3.1 billion came from recurring operational income (i.e. ‘core business’ profits), while the remaining $2.6 billion was attributable to mark-to-market gains on holdings such as Bitcoin and gold.

Thus, about 54% of H1 2025 profit stemmed from recurring business operations and 46% from asset revaluation gains.

By contrast, in H1 2024, Tether’s profit was ~ $5.2 billion.

This brings the year-over-year (YoY) growth for H1 2025 to approximately 9.6%.

Meanwhile, Q2 2025’s $4.9B is particularly striking when compared to earlier quarters:

• In Q2 2024, Tether had a much lower profit base (less public data, but one report claims ~ $1.3B).
• The jump in Q2 2025 thus reflects a very steep acceleration in profitability.

Thus, Tether is growing both in absolute profit and in the proportion of profit coming from its core operations.

Quarterly Breakdown & Profit Drivers

Here’s a rough breakdown of contributions and context:

Where do the recurring profits come from?

• Interest income on reserves: Tether holds large reserves in U.S. Treasuries and cash-equivalent instruments. As interest rates have risen, the yield on those holdings has been favorable.
• Fee income / operations: While the bulk is from interest, Tether may derive ancillary income from operational activities (e.g. issuance fees, treasury management, investment returns beyond core) though the public statements emphasize reserve income as dominant.
• The mark-to-market component comes from revaluations in volatile assets (Bitcoin, gold, etc.) held on Tether’s books.

Moreover, Tether has been increasing its scale: the USDT circulating supply passed $157 billion in Q2 2025, having grown by ~$13B during that quarter alone.

In terms of balance sheet positioning, Tether’s total assets climbed to ~ $162 billion vs liabilities of ~$157 billion.

Thus, the profit growth comes from a combination of:

• Larger scale — more USDT in circulation → more reserves to yield interest.
• Higher yield environment — interest rates supporting more return on Treasuries / cash equivalents.
• Asset gains — favorable revaluation when markets move (especially crypto and gold).
• Operational leverage — fixed costs amortized over larger scale.

The Rise of Stablecoins & Correlation with Tether Profit

Stablecoins have become a backbone of crypto finance — they provide a “dollar proxy” within blockchain ecosystems, enabling liquidity, trading, remittances, and DeFi access.

• As more users, exchanges, and institutions adopt stablecoins, demand for issuance increases, which means more reserves need to be held.
• These reserves, when invested in safe, yield-bearing assets (like U.S. Treasuries), generate steady interest income — the primary profit engine.
• Thus, growth in stablecoin circulation directly magnifies Tether’s profit potential, especially in a higher interest rate regime.

In effect, every incremental USDT minted (and held by users) enables Tether to allocate more capital to yield-bearing assets, compounding its earning base.

An interesting academic insight: a recent paper notes that by Q1 2025, Tether held ~$98.5 billion in U.S. Treasury bills—making it one of the largest non-sovereign buyers of T-Bills globally. The authors suggest that Tether’s scale may even influence short-term Treasury yields, given how its demand interacts with market dynamics.

So the virtuous cycle is:

More stablecoin circulation → more reserves → higher interest income → more profit → confidence & reinvestment → further stablecoin growth.

Comparing with Circle (USDC Issuer)

While Tether dominates in scale, Circle (the issuer of USDC) is the second major player. Here’s how they compare.

Circle’s Revenues & Profits

• In its Q2 2025 earnings (its first since going public), Circle reported $658 million in revenue, a 53% YoY increase.
• Of that, $634 million was from reserve income, and the rest (~$24 million) came from other revenue streams (fees, services).
• However, in that same quarter, Circle registered a net loss of $482 million, largely driven by non-cash IPO-related charges (stock-based compensation, convertible debt valuation changes).
• In 2024, Circle reported ~$1.68 billion in revenues, up from $1.45 billion in 2023. Net income from continuing operations was ~$157 million in 2024 (versus ~$271.5 million in 2023).
• According to filings, more than 99 % of Circle’s revenue comes from interest income on reserves backing USDC.

Thus, Circle’s model is structurally very similar to Tether’s: issue stablecoins, hold reserves, earn interest.

Differences & Risks

• Scale: Tether’s USDT supply dwarfs USDC, giving Tether a more powerful base for profit.
• Profit volatility: Circle’s non-interest revenue is still small, making it more vulnerable to interest rate shifts. As analysts note, a 1% drop in yield could erode hundreds of millions in revenue for Circle.
• Non-cash charges: Because of IPO-related accounting (stock awards, convertible debt), Circle’s profitability in the short term is depressed despite strong top-line growth.
• Dependence on partners: Circle shares a portion of reserve income with distribution platforms (for example, it pays Coinbase for USDC listings and distribution).

In Q2 2025, for example, although revenue jumped 53%, the net result was a loss.

Interpretation & Outlook

• Tether’s dominance gives it both scale and buffer: even if rates drop or market volatility hits, Tether’s large base and diversified holdings can absorb shocks.
• The asset revaluation component (~46% in H1) is substantial, but the fact that recurring business accounted for over half suggests Tether’s core engine is healthy.
• For Circle, the IPO “transitions costs” (non-cash charges) cloud the profitability picture; once those settle, its growth in revenue may translate to more stable profitability.
• The broader stablecoin expansion is feeding both players: as crypto infrastructure, payments, DeFi, remittance, on-chain finance grow, demand for stablecoins grows — and with it, the reserve base that generates interest.
• Regulatory developments (such as the U.S. GENIUS Act and stablecoin frameworks) may accelerate adoption and institutional use, benefiting both issuers.
• One risk is interest rates: if the macro environment moves to lower rates, yield on Treasuries / cash equivalents may compress, pressuring revenue. But fiduciary scale, hedging, and diversification can mitigate.

Following a successful H1 2025, Tether is reportedly looking to sell ~3% of its equity at ~$20 billion


SoftBank and ARK are reportedly eyeing an investment in Tether, a move that could value the stablecoin issuer at up to $500 billion as it diversifies beyond USDT.

For comparison, OpenAI, the developer behind ChatGPT, is said to be in talks to raise capital at a similar $500 billion valuation.

Tether CEO, Paolo Ardoino, confirmed earlier this week that the company is exploring a potential fundraise ‘from a select group of high-profile key investors,’ though he declined to disclose specific names or amounts.

Ardoino also hinted that Tether could expand into new business lines, including commodities, energy and media, as part of its broader growth strategy.

Stay tuned to BitKE Updates on stablecoin developments.

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