Tether's $162B Reserves Bolster Dollar's Digital Supremacy

Tether Holdings SA has announced a strategic reentry into the U.S. market, aiming to become the leading stablecoin issuer in the country. This move follows the company’s resolution of past regulatory issues, including a fine for misrepresenting reserves, and reflects its ambition to replicate its global success in the U.S. market Crypto SWOT: Tether is reentering the U.S. to become top stablecoin issuer^[1]. The company’s recent financial and operational updates underscore its position as a dominant force in the stablecoin sector.

Tether’s Q2 2025 attestation, verified by BDO, a top-tier accounting firm, revealed that the company issued over $13.4 billion in USD₮ during the quarter, bringing its year-to-date issuance to $20 billion. This growth has pushed the circulating supply of USD₮ to $157 billion, with total assets exceeding $162.5 billion. Notably, Tether’s exposure to U.S. Treasuries—$127 billion in direct and indirect holdings—positions it as one of the largest global holders of U.S. government debt Stablecoin USDT Issuer Tether’s Strategic Shift: Phasing Out Legacy Blockchains^[3]. This reserve composition aligns with the GENIUS Act’s goals to strengthen the dollar’s digital leadership and demonstrates Tether’s role in providing scalable, on-chain access to U.S. dollar liquidity.

The company is also undergoing a significant blockchain infrastructure overhaul. Tether has announced plans to phase out support for five legacy blockchains—Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand—while expanding its presence on Bitcoin’s RGB protocol. This shift, effective September 1, 2025, aims to streamline operations by designating USD₮ on legacy networks as “unsupported” (allowing transfers but halting new issuances) and redirecting resources to high-demand ecosystems. The RGB protocol, a next-generation framework for Bitcoin-based digital assets, enables private, scalable transactions and integrates USD₮ with Bitcoin’s Lightning Network, enhancing usability for microtransactions and DeFi applications .

Tether’s financial resilience further solidifies its market position. The company reported a net profit of $4.9 billion in Q2 2025, bringing its year-to-date earnings to $5.7 billion. This profitability has enabled strategic reinvestments, including $4 billion in U.S.-based initiatives such as XXI Capital and Rumble Wallet. Shareholder capital remains stable at $5.47 billion, acting as a buffer against market volatility and underscoring Tether’s long-term solvency Stablecoin USDT Issuer Tether’s Strategic Shift: Phasing Out Legacy Blockchains^[3].

These developments signal a transformative phase for Tether. By combining robust financials with infrastructure upgrades, the company is addressing scalability and privacy challenges while reinforcing the dollar’s role in global digital finance. The integration of USD₮ on RGB and the transition from legacy blockchains highlight Tether’s adaptability in an evolving regulatory and technological landscape. As the stablecoin market continues to mature, Tether’s strategic moves could redefine the balance of power, particularly as regulators formalize frameworks for digital assets.