According to the stablecoin issuer, the foundation of Tether’s financial growth and stability comes from an income base derived from investments in US Treasury Bills (T-Bills), which was first implemented after eliminating commercial paper from its stablecoin reserves and replacing it with US T-Bills in 2022. Related Reading: XRP Analyst Thinks The Coin Is Ready To Skyrocket By 21,000% To Over $150 The report also revealed that in the second quarter of the year, direct and indirect ownership of US Treasuries within Tether’s token reserves made notable progress, surpassing $97.6 billion, resulting in a historic high in this metric. This brings Tether’s exposure to Treasuries across multiple countries, positioning it as the 18th largest holder of US debt globally and the 3rd largest purchaser of 3-month US Treasuries after the UK and the Cayman Islands.
Tether Commits Profits To Ecosystem Expansion According to the financial disclosures, as of June 30, 2024, Tether’s reserves for circulating tokens totaled $118 billion, exceeding debt by $5.3 billion. In a strategic move, the firm also revealed that a portion of the second quarter’s profits is going to be reinvested in "pivotal projects” to bolster Tether’s ecosystem, while a substantial excess reserve of $5.3 billion was maintained to fortify token stability.
Transition To US Treasuries Pays Off According to the report, independently audited by accounting firm BDO, Tether’s net operating profit for the second quarter of 2024 reached a new high of $1.3 billion, propelling the company’s total net profit for the first half of the year to over $5 billion.
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