Tether-backed Antalpha’s loan TVL declined $696 million as its gold bet returned a $22 million loss
Antalpha’s facilitated loan ebook shrank by $696 million within the second quarter as losses on tokenized gold holdings at its subsidiary, Aurelion, pushed the digital asset financing group into the crimson.
According to the agency’s filing with the US Securities and Exchange Commission (SEC), its complete loan ebook fell 34% to $1.35 billion as of June 30, from $2.05 billion a yr earlier and $1.71 billion on the finish of March.
As a end result, the corporate’s income fell 28% to $12.2 million, whereas web earnings attributable to Antalpha swung to a $12.5 million loss from a $700,000 revenue.
Meanwhile, the lending contraction unfold throughout either side of Antalpha’s enterprise. The agency stated its supply-chain loan TVL fell 46% to $384 million, whereas margin-loan TVL dropped 27% to $969 million.
Indeed, Galaxy Digital had identified that the broader crypto lending market had contracted for a third straight quarter to $56.16 billion. This is 40.13% decrease than the 2025 third quarter document high of $78.69 billion.
Antalpha attributed its market decline to decrease financing exercise and extra selective capital deployment somewhat than credit score deterioration, saying it has recorded no principal loss since inception.
Meanwhile, the agency suggests the income slowdown might prolong into the third quarter.
Antalpha expects third-quarter income of $10 million to $12 million, under the $12.2 million reported within the second quarter, regardless of assuming continued stable demand for crypto-collateralized financing and broadly unchanged market situations.
Aurelion drove Antalpha’s losses
The sharper earnings hit got here from Aurelion, which Antalpha has consolidated since taking management in October 2025. Aurelion is Antalpha’s managed tokenized-gold subsidiary that trades publicly beneath the ticker AURE.
According to the submitting, Aurelion recorded about $22.3 million in fair-value losses tied to its XAUt and XAUE tokenized-gold holdings, driving most of Antalpha’s $25.1 million working loss. Roughly $21.2 million of the gold-related hit was unrealized, whereas about $1.1 million was realized.
Antalpha stated the consolidated figures obscure the efficiency of its core Antalpha Prime financing platform, which remained operationally worthwhile on a non-GAAP foundation.
Chief Financial Officer Paul Liang stated the corporate plans to proceed deploying capital selectively whereas investing in higher-return adjoining companies. He added:
“We consider that disciplined operations and threat administration are the muse for creating long-term shareholder worth. As such, we are going to deploy capital selectively, improve our financing platform, and advance high ROI complementary capabilities such as our tokenized gold platform and Web3 AI agent, Nina.”
Already, Antalpha is positioning Aurelion as greater than a automobile for holding tokenized gold. Aurelion’s Chief Executive Officer Frank Zheng stated the corporate is remodeling into a risk-control and know-how layer for on-chain gold, aiming to generate recurring, technology-driven income.
XAUt is issued by Tether, which can be a main Antalpha shareholder. Tether additionally points the biggest stablecoin by market capitalization, USDT.
Tether-related entities beneficially owned 1.95 million Antalpha shares, representing about 8.1% of the corporate, in response to a June regulatory filing. The stablecoin issuer additionally owns 21.5% of Aurelion Class A shares.
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