TL;DR:
- The total value locked (TVL) of Antalpha’s facilitated loan book dropped by $696 million in the second quarter of 2026, settling at $1.353 billion.
- Aurelion, a subsidiary of the firm, generated $22.3 million in losses linked to positions in the tokenized gold assets XAUt and XAUE.
- Quarterly revenue decreased by 28% year-over-year to $12.2 million, resulting in an attributable net loss of $12.5 million.
Antalpha reported that its active loan volume experienced a $696 million contraction during the second quarter of 2026. The institutional digital asset financing platform was directly impacted by losses on tokenized gold positions held by its consolidated subsidiary, Aurelion.
According to the financial report filed with the SEC, the company’s facilitated loan book fell 34% year-over-year as of June 30, 2026, settling at $1.353 billion compared to the $2.049 billion reported in the same period of the previous year. The figure also marked a decline from the $1.710 billion recorded at the end of March 2026.
The contraction in the loan portfolio directly affected consolidated revenue, which dropped from $17 million in the second quarter of 2025 to $12.2 million in the analyzed period.
The net income attributable to the company shifted from a $700,000 profit to a net loss of $12.5 million at the end of June. According to the corporate report, the overall operating balance posted a negative figure of $25.1 million due to fair value adjustments on tokenized metal holdings.
The decline in lending spanned the company’s two primary operating business lines. The TVL for mining supply chain financing plunged 46% to $384 million, while margin loans fell 27% to stand at $969 million as of June 30.
Industry analysis data compiled by Galaxy Digital suggests that this trend coincided with a broader contraction across the crypto credit market, whose global volume dropped to $56.16 billion in Q2 2026, marking three consecutive quarters of decline from the peak of $78.69 billion reached in late 2025.
The firm’s executive leadership indicated in regulatory filings that the balance sheet reduction reflects a more selective capital deployment strategy rather than a deterioration in credit quality, emphasizing that the platform has suffered zero principal losses since inception.
Impact of Aurelion and Strategic Exposure to Tether Gold
The vast majority of the negative balance stemmed from Aurelion, a tokenized gold infrastructure entity trading under the ticker AURE, whose financial results have been consolidated by the parent company since October 2025.
Aurelion reported fair value losses of $22.3 million across its XAUt token holdings and the XAUE yield protocol during the second quarter. Of this total, $21.2 million corresponded to unrealized losses arising from spot gold price fluctuations, while $1.1 million represented realized losses.
The firm’s corporate structure maintains close ties with the issuer of the USDT stablecoin. Entities associated with Tether held 1.95 million shares of the parent company at the close of June 2026, representing an 8.1% stake, alongside controlling 21.5% of Aurelion’s Class A common stock.
Company leadership noted that the consolidated results obscure the underlying performance of its technology platform, Antalpha Prime, which sustained operational profitability on a non-GAAP basis.
Chief Financial Officer Paul Liang stated that corporate strategy will prioritize the selective deployment of resources toward complementary business lines, such as the tokenized gold technology layer and the Nina artificial intelligence agent for Web3.
Aurelion CEO Frank Zheng indicated that the subsidiary is progressing in its transformation into an on-chain gold risk management provider, aiming to generate recurring software-based revenue and reduce exposure to underlying commodity price volatility.
For the third fiscal quarter of 2026, the company projects revenue between $10 million and $12 million, a guidance range reflecting a conservative short-term lending outlook.
