Tether said on Friday that it generated $5.2 billion in profit during the second quarter, with much of the gain tied to interest earned on the assets backing its USDT stablecoin. The company has continued to scale its token supply while drawing close scrutiny over the quality and transparency of its reserves.

The latest results underscore how rising rates have helped stablecoin issuers turn reserve holdings into a major source of income. Tether, which issues the world’s largest stablecoin by market value, has long faced questions from regulators and market watchers about whether its assets fully match the tokens in circulation.

The company said its reserve base also expanded during the quarter, supporting additional issuance of USDT. That growth comes as digital-asset firms face tighter oversight and renewed pressure to prove that customer funds and backing assets are safe, liquid, and properly disclosed.

Tether’s strong earnings highlight the scale of its role in crypto markets, where USDT is widely used for trading and transfers. Still, the company’s financial strength has not eliminated concerns about transparency, especially as authorities in several jurisdictions continue to review the stablecoin sector.