Tether Posts Record $4.9B Profit

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Good Morning.

Tether flexes its profit power, Ethereum looks a decade ahead, and capital floods into stablecoin infrastructure. This week’s signals point to a market sharpening its focus, leaner chains, deeper integrations, and real-world utility on-chain.

In Today's Email:

• What Matters: Tether Posts Record $4.9B Profit 💵 

• Founders Highlight: Sonya Kim of Progrmd Capital 👩 

• Deal Flow: Stable’s $28M Seed Round 💰️ 

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TOGETHER WITH

Scallop Secures US MSB License, Unlocking Global Expansion for Crypto-Fiat Finance

Scallop, the regulated finance layer behind the $EMYC ecosystem, has officially secured its US Money Services Business (MSB) license, marking a major milestone in crypto-fiat integration.

With this approval, Scallop becomes one of the very few crypto-native apps able to offer multi-currency fiat accounts, crypto wallets, and Visa/Mastercard cards to users across the United States and 160+ countries, without restrictions.

The Scallop App combines traditional banking tools with Web3 functionality in one seamless experience:

• Multi-currency IBAN accounts

• Crypto swap, buy and sell tools

• Visa debit cards with staking-based tiers

• Crypto credit cards powered by Mastercard

$EMYC, Scallop’s native utility token, is deeply embedded across the ecosystem, used for gas fees, tier upgrades, and revenue-backed buybacks.

The app launch will drive further utility through staking-based card levels, unlocking cashback, spending limits, and premium card options.

For developers and businesses, Scallop also offers an SDK allowing plug-and-play integration of Scallop’s services including cards, FX, crypto ramps, and compliance infrastructure into any fintech or Web3 product, leveraging Scallop’s licensing across all covered regions.

This isn’t just another app launch. It’s a regulatory greenlight to bring fully compliant crypto-finance tools to the global market, starting with the US.

The Scallop App is launching soon.

A full revamp of the official website will go live in the coming days, featuring a refreshed design, updated content, and easier access to all core features. In the meantime, make sure to join the waitlist for early access to the Scallop App.

Follow Scallop on X and Telegram.

WHAT MATTERS

Tether Posts Record $4.9B Profit

State of play: Tether posted a record-breaking $4.9B net profit in Q2 2025, surpassing its previous high of $4.52B set in early 2024.

• The stablecoin issuer now has over $157B in USDT circulating, with $13.4B issued just last quarter.

• Its attestation report from BDO shows $127B in US Treasury exposure, $105.5B directly and $21.3B indirectly, marking an $8B increase from Q1.

• Tether also revealed it held nearly $9B in Bitcoin at quarter-end.

With a total USDT supply of $163B, Tether remains the dominant stablecoin, far ahead of Circle’s $64B USDC. The firm continues to emphasize its global footprint, but signals interest in entering the US market, citing favorable conditions.

What’s next: Tether’s record profit gives it more firepower to expand globally and enter the US market. Expect continued investment in Bitcoin and Treasuries as it strengthens its reserve strategy.

For builders and investors: Tether’s growing profits signal strong demand and operational dominance. Watch how it reinvests this capital, especially if it pressures competitors like USDC or ramps up presence in the US.

BUILDER-INVESTOR HIGHLIGHT

Sonya Kim of Progrmd Capital

Intro: Sonya Kim is an investor at Progrmd Capital, a specialist crypto investment firm that provides clients with actively managed exposure to liquid tokens.

Previous background: She partnered with Steakhouse Financial, a crypto-native advisory to some of the largest DAOs and Web3 projects. Prior to founding Progrmd Capital, Sonya worked at Aberforth Partners and Kiltearn Partners.

• She began her career as Investment Risk Analyst at Baillie Gifford, a global growth investor.

• Sonya holds a Master of Finance from MIT as well as a BA in Mathematics and a minor in Computer Science from NYU.

• She has passed all three levels of the CFA program.

The big idea: Sonya’s big idea is to build a new DeFi product that bridges traditional finance and real-world assets, unlocking institutional-grade strategies for on-chain users.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

INSIGHTS

Ethereum's Lean Roadmap

State of play: Ethereum Foundation researcher Justin Drake has outlined a 10-year roadmap called "lean Ethereum," aiming to massively scale the network while preserving decentralization, uptime, and simplicity.

• The plan targets 10,000 TPS on Layer 1 and 1M TPS on Layer 2.

• It will be supported by major upgrades like Beacon Chain 2.0 for consensus, Post-Quantum Blobs 2.0 for data, and EVM 2.0 for execution.

• Drake emphasizes quantum resistance through hash-based cryptography and a minimalist design philosophy focused on modularity and provable security.

DEAL FLOWS

Stable Raises $28M for USDT-Focused Chain

Deal flows soared this week - we saw $600M in deals 💼 

Stable, a new Layer 1 blockchain designed specifically for stablecoins, has raised $28M in a seed round co-led by Bitfinex and Hack VC.

• The project aims to boost USDT adoption by offering instant, low-cost transactions using USDT as the native gas token.

• Bitfinex played a key role in incubating Stable, and Tether CEO Paolo Ardoino has been closely advising the team.

• The chain will launch in phases starting later this year, with a full mainnet rollout expected by late Q3 or early Q4 2025.

Deal flows in the past week:

• Bloom Labs Ltd, $1.6M Pre-Seed Round

• Data Guardians Network, $5M Pre-Seed Round

• OkaFund, $1M Seed Round

• Due, $5M Seed Round

• Taceo, $5.5M Seed Round

• Stable, $28M Seed Round

• STON.fi, $9.5M Series A Round

• Finloop, $10M Series A Round

• Zodia Markets, $18.25M Series A Round

• Courtyard, $30M Series A Round

• RD Technologies, $40M Series A2 Round

• Lightyear, $23M Series B Round

• Bitzero, $25M Series B Round

• D2X, $5M Strategic Round

• GAIB, $10M Strategic Round

• OSL Group, $300M Equity Round

• ETH Strategy, $46.5M Pre-token Sale

• Aria, $5M Unknown Round

• Falcon Finance, $10M Unknown Round

QUICK BITES

• Visa expands stablecoin settlement.

• Robinhood’s crypto volumes slip QoQ.

• Kraken’s Q2 revenue rises 18% to $412M.

• SharpLink Gaming boosts holdings by $43M in ETH.

• Tether posts record $4.9B net profit for second quarter.

• EF's Justin Drake shares 10-year 'lean Ethereum' vision.

• Spot ether ETFs post 20th consecutive day of net inflows.

• ETH treasuries surpass $10B across 64 entities, data shows.

• Firms amend SOL ETF filings as they look to get the SEC's approval.

• Strategy reports record net income in Q2, files $4.2B STRC offering.

• PancakeSwap maintains lead as largest DEX by spot volume in July.

• Coinbase to offer tokenized stocks and prediction markets to US users.

• Coinbase reports data theft cost $307M as spot volumes and revenue dip.

NOTEWORTHY READS

• Tindorr’s read on Ethena: Saylor Mode On.

• Arcana’s read on Are Private AMMs taking over Solana?

• John Wang’s read on Pop Mart, Not Poker: Gambling For Women.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.