Tether-backed Antalpha’s loan TVL declined $696 million as its gold bet returned a $22 million loss

Antalpha’s facilitated loan book shrank by $696 million in the second quarter as losses on tokenized gold holdings at its subsidiary, Aurelion, pushed the digital asset financing group into the red.

According to the firm's filing with the US Securities and Exchange Commission (SEC), its total loan book fell 34% to $1.35 billion as of June 30, from $2.05 billion a year earlier and $1.71 billion at the end of March.

As a result, the company's revenue fell 28% to $12.2 million, while net income attributable to Antalpha swung to a $12.5 million loss from a $700,000 profit.

Meanwhile, the lending contraction spread across both sides of Antalpha’s business. The firm said its supply-chain loan TVL fell 46% to $384 million, while margin-loan TVL dropped 27% to $969 million.

Indeed, Galaxy Digital had pointed out that the broader crypto lending market had contracted for a third straight quarter to $56.16 billion. This is 40.13% lower than the 2025 third quarter record high of $78.69 billion.

Antalpha attributed its market decline to lower financing activity and more selective capital deployment rather than credit deterioration, saying it has recorded no principal loss since inception.

Meanwhile, the firm suggests the revenue slowdown may extend into the third quarter.

Antalpha expects third-quarter revenue of $10 million to $12 million, below the $12.2 million reported in the second quarter, despite assuming continued solid demand for crypto-collateralized financing and broadly unchanged market conditions.

Aurelion drove Antalpha's losses

The sharper earnings hit came from Aurelion, which Antalpha has consolidated since taking control in October 2025. Aurelion is Antalpha’s controlled tokenized-gold subsidiary that trades publicly under the ticker AURE.

According to the filing, 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 operating loss. Roughly $21.2 million of the gold-related hit was unrealized, while about $1.1 million was realized.

Antalpha said the consolidated figures obscure the performance of its core Antalpha Prime financing platform, which remained operationally profitable on a non-GAAP basis.

Chief Financial Officer Paul Liang said the company plans to continue deploying capital selectively while investing in higher-return adjacent businesses. He added:

“We believe that disciplined operations and risk management are the foundation for creating long-term shareholder value. As such, we will deploy capital selectively, enhance 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 more than a vehicle for holding tokenized gold. Aurelion's Chief Executive Officer Frank Zheng said the company is transforming into a risk-control and technology layer for on-chain gold, aiming to generate recurring, technology-driven revenue.

XAUt is issued by Tether, which is also a major Antalpha shareholder. Tether also issues the largest stablecoin by market capitalization, USDT.

Tether-related entities beneficially owned 1.95 million Antalpha shares, representing about 8.1% of the company, according to a June regulatory filing. The stablecoin issuer also owns 21.5% of Aurelion Class A shares.

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