Tether International Ltd., the holding company behind the largest stablecoin, USDT, posted second-quarter net profit of $4.9 billion.
The company held over $162.5 billion in reserves against $157.1 billion in liabilities, the USDT tokens issued, according to the latest attestation by accounting firm BDO. That puts excess reserves at $5.4 billion.
Exposure to U.S. Treasuries, including direct holdings and instruments like money market funds and overnight reverse repurchase agreements, rose past $127 billion as it issued more than $13 billion of USDT in the quarter.
The company said it booked year-to-date recurrent profits of $3.1 billion, and another $2.6 billion in mark-to-market contributions of gold and bitcoin (BTC) price appreciation. The firm held roughly $8.9 billion in BTC in the reserves, translating to over 83,200 tokens as of June 30, the attestation shows.
Tether has begun channeling earnings into investments spanning artificial intelligence, renewable energy and digital communications, with U.S.-based initiatives receiving about $4 billion to date, the firm said.
That figure includes XXI Capital, bitcoin treasury firm that is poised to go public by merging with a Cantor Fitzgerald-backed shell company (CEP), investment in video sharing platform Rumble and developing the firm’s crypto wallet offering.
The report comes as stablecoins are rapidly being integrated into the broader financial plumbing, with the U.S. signing the GENIUS Act into law to regulate the sector.
Earlier this month, CEO Paolo Ardoino said in an interview with CoinDesk that his company will comply with the new laws and issue an on-shore version of its stablecoin.
Read more: Tether-Focused Blockchain Stable Raises $28M to Power Stablecoin Payments