Leading stablecoin issuer Tether has reported a record profit of $5.2 billion for the first half of the year, with $1.3 billion of net operating profits being generated in the second quarter of the year.

Circle’s USD Coin (USDC) experienced a surge in trading volume last month, buoyed by a combination of regulatory clarity in Europe and broader market inflows, according to CCData’s latest Stablecoins & CBDCs report.

A collaborative effort between the Bank for International Settlements and the Bank of England has unveiled a system capable of providing near real-time data on stablecoin liabilities and their underlying assets.

Top stories in the Crypto Roundup today:

• Tether Reports Record $5.2 Billion Profit in First Half of the Year
• Circle’s USDC Trading Volume Soars Amid Regulatory Clarity
• BIS and Bank of England Unveil Stablecoin Monitoring Project Trial
• Total Stablecoin Market Cap Sees Tenth Consecutive Month of Increase

Tether Reports Record $5.2 Billion Profit in First Half of the Year

Leading stablecoin issuer Tether has reported a record profit of $5.2 billion for the first half of the year, with $1.3 billion of net operating profits being generated in the second quarter of the year.

Tether revealed that its ownership of U.S. Treasuries is now at an all-time high, bringing its exposure to Treasuries above that of Germany, the United Arab Emirates, and Australia.

The firm detailed it now ranks 18th when it comes to countries owning U.S. debt, and is only behind the United Kingdom and the Cayman Islands when it comes to purchases of 3-month U.S. Treasuries.

In its latest quarterly attestation report, the stablecoin issuer disclosed $118.3 billion of assets in reserve against $113.1 billion in liabilities at the end of the second quarter, meaning over $5 billion in excess reserves.

The company issued around $8.3 billion in USDT during the second quarter of the year, and disclosed Bitcoin holdings of around 80,000 BTC. Earlier, the company committed to using 15% of its realized net operating profits to invest in Bitcoin.

Circle’s USDC Trading Volume Soars Amid Regulatory Clarity

Circle’s USD Coin (USDC) experienced a surge in trading volume last month, buoyed by a combination of regulatory clarity in Europe and broader market inflows, according to CCData’s latest Stablecoins & CBDCs report.

The report details that trading volume for USDC pairs on centralized cryptocurrency exchanges reached $135 billion as of July 25, while the stablecoin’s market capitalization rose 5.4% to $33.6 billion.

The uptick coincided with the implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. Circle became the first USDC issuer to secure regulatory approval under MiCA.

While Tether’s USDT remains the dominant stablecoin with a 73.5% market share, its growth has been more tempered. Despite posting a record 11 consecutive months of market capitalization increases, reaching $114 billion in July, USDT’s growth rate lagged behind USDC.

The broader stablecoin market also saw gains. Total market capitalization climbed 2.1% to $164 billion in July, its highest level since April 2022. However, trading volume on centralized exchanges contracted for the fourth consecutive month, falling 8.35% to $795 billion as of July 25.

BIS and Bank of England Unveil Stablecoin Monitoring Project Trial

A collaborative effort between the Bank for International Settlements and the Bank of England has unveiled a system capable of providing near real-time data on stablecoin liabilities and their underlying assets.

Dubbed Pyxtrial, the initiative could change how regulators monitor not just stablecoins but also other tokenized assets backed by real-world value. The system allows authorities to directly access data from issuers’ systems, offering a level of transparency previously unattainable.

Pyxtrial could notably also extend to monitoring other tokenized products backed by real-world assets. It comes after a tumultuous period in the cryptocurrency space that saw various exchanges and issuers adopt a Proof-of-Reserves system to ease concerns.

The project’s “modular” and “customizable” design means it can be adapted to various setups globally. As a proof of concept, Pyxtrial has developed a solution that can support regulators in tracking assets and liabilities nearly in real-time.

Total Stablecoin Market Cap Sees Tenth Consecutive Month of Increase

The total market capitalization of the stablecoin sector rose 2.11% to $164 billion to reach its tenth consecutive increase in end-of-month market capitalization, and the highest market capitalization since April 2022.

Trading volumes for stablecoin pairs on centralized exchanges, meanwhile, fell 8.35% to $795 billion as of July 25, marking the fourth consecutive monthly decline. Volumes are nevertheless on track to record a higher end-of-month figure.

Dig deeper into the stablecoin sector through CCData’s latest Stablecoins & CBDCs report.

State of the Crypto by Top Tier Exchange Volume

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