Stablecoin issuer posts record profit; BlackRock launches tokenized money market funds for reserve requirements
Tether generated $1.5 billion in net operating profit during the second quarter of 2026, driven primarily by interest earned on US Treasury holdings and repurchase agreements. The stablecoin issuer’s earnings underscore a structural shift in crypto business models, where balance sheet management and yield-bearing assets now rival transaction volume as profit engines.
The convergence accelerated this week as BlackRock introduced two tokenized money market products designed to help stablecoin issuers meet reserve requirements under the US GENIUS Act, a federal framework for payment stablecoins. One fund tokenizes shares of BlackRock’s existing Treasury liquidity strategy on Ethereum. The second is a new institutional money market vehicle supporting multiple blockchains with automatic income reinvestment. BlackRock already operates BUIDL, the industry’s largest tokenized Treasury fund.
Tether’s Q2 performance reflects the economics of stablecoin reserves. The issuer’s circulating supply of USDT rose $446 million to $184.6 billion, even as the broader stablecoin market contracted. Tether holds more than 60% of global stablecoin market share, valued at $307 billion by DeFiLlama. Elevated short-term interest rates boosted income from Treasury bills and cash equivalents, a dynamic that benefits any issuer holding significant US government debt.
American Bitcoin, the Nasdaq-listed miner majority-owned by Hut 8, posted a record quarterly production of 932 BTC in Q2 but reported a $57.2 million net loss. Mining revenue increased 8% from Q1, reaching $67 million, yet the company still lost money after operating expenses. American Bitcoin held 8,002 BTC as of June 30 and pledged 3,090 BTC as collateral to equipment provider Bitmain. The company completed a 1-for-15 reverse stock split last month to maintain Nasdaq listing compliance after share price fell below minimum bid requirement.
Tokenized gold adoption in decentralized finance remains constrained despite trading volume growth. Spot trading volume for tokenized gold reached $90.7 billion in Q1 2026, but only $63 million of Tether Gold and PAX Gold served as collateral on lending protocols Aave v3 and Morpho, according to research firm RedStone. That represents 1.5% of the $4.2 billion combined market cap of the two tokenized gold products.
The limited DeFi adoption became apparent in March when gold prices fell 10% in a single week. JPMorgan analyst Greg Shearer described the move as an “extremely brutal flush.” Aave processed the largest cluster of XAUT liquidations after the decline. Gold futures have fallen 20% from January peaks, trading near $5,600 per troy ounce.
Tether’s reserve buffer stood at $4.11 billion as of June 30, providing a cushion against market volatility and regulatory scrutiny. The company’s profit growth contrasts sharply with traditional stablecoin issuers facing margin compression as competition intensifies and interest rate cycles shift.
