Woofun AI reports that Tether generated a $1.5 billion net operating profit in the second quarter, a financial outcome primarily attributed to income from its US Treasury portfolio rather than crypto market performance.

The deeper driver of this profitability is the interest earned on repurchase agreements and short-term loans backed by government securities. As of June 30, the company maintained a reserve buffer of $4.11 billion, indicating assets exceeded liabilities by that margin.

Woofun AI notes that the company benefited from elevated short-term interest rates, which boosted income from Treasury bills and related cash-equivalent assets.

Structurally, the circulating supply of USDt (USDT) expanded by $446 million during the quarter to reach $184.6 billion. This growth occurred despite a broader stablecoin market contraction, allowing Tether to retain more than 60% of the global stablecoin market, which was valued at roughly $307 billion as of Friday.

Tether remains one of the world’s largest holders of US Treasury securities, which now constitute the backbone of its reserve portfolio. This strategic positioning underscores the issuer's reliance on traditional financial instruments to sustain earnings amidst digital asset volatility.