Digital asset financing group Antalpha saw its facilitated loan book contract by $696 million during the second quarter, as fair-value losses on tokenized gold holdings at its subsidiary, Aurelion, dragged the company into the red.
According to a regulatory filing with the US Securities and Exchange Commission (SEC), Antalpha’s total loan book shrank 34% to $1.35 billion as of June 30. This is down from $2.05 billion in the same period last year and $1.71 billion at the end of March.
The lending slowdown led to a 28% drop in revenue to $12.2 million, while net income attributable to Antalpha reversed from a $700,000 profit to a $12.5 million loss.
The contraction in activity was felt across both of the firm’s primary business lines. Antalpha reported that its supply-chain loan total value locked (TVL) fell 46% to $384 million, while its margin-loan TVL declined 27% to $969 million.
This decline aligns with broader trends highlighted by Galaxy Digital, which noted that the overall crypto lending market contracted for a third consecutive quarter to $56.16 billion. That total sits 40.13% below the record high of $78.69 billion established in the third quarter of 2025.
Antalpha attributed its shrinking loan book to reduced financing demand and a more cautious approach to deploying capital rather than any credit issues, noting that it has suffered zero principal losses since its inception.
Nevertheless, the company indicated that its revenue slowdown is likely to persist into the third quarter.
Antalpha projects third-quarter revenue to fall between $10 million and $12 million—down from the $12.2 million recorded in the second quarter—even when factoring in steady demand for crypto-backed loans and stable market conditions.
Aurelion Behind Antalpha’s Financial Slump
The primary driver of the group’s financial downturn was Aurelion, a tokenized-gold subsidiary trading publicly under the ticker AURE. Antalpha has consolidated Aurelion’s financial results since taking control of the business in October 2025.
The SEC filing shows that Aurelion posted approximately $22.3 million in fair-value losses on its XAUt and XAUE tokenized-gold holdings, which accounted for the vast majority of Antalpha’s $25.1 million operating loss. Of these gold-related losses, roughly $21.2 million were unrealized, while about $1.1 million were realized.
Antalpha pointed out that these consolidated figures mask the performance of its core financing platform, Antalpha Prime, which remained operationally profitable on a non-GAAP basis.
Chief Financial Officer Paul Liang noted that the company will continue to deploy capital selectively while funding adjacent, high-return initiatives. He stated:
“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.”
Antalpha is already working to expand Aurelion’s scope beyond simply holding tokenized gold. Aurelion Chief Executive Officer Frank Zheng said the subsidiary is transitioning into a technology and risk-control layer for on-chain gold, with the goal of generating recurring, tech-driven revenue streams.
The XAUt token is issued by Tether, which is a major shareholder in Antalpha. Tether is also the issuer of USDT, the largest stablecoin by market capitalization.
According to a regulatory filing from June, Tether-affiliated entities beneficially owned 1.95 million shares of Antalpha, representing an 8.1% stake in the company. The stablecoin issuer also holds a 21.5% stake in Aurelion’s Class A shares.
