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Tether Reports $1 Billion Q1 Profit, Driven by $120 Billion Treasury Holdings

Coin WorldThursday, May 1, 2025 5:52 pm ET
2min read

Tether, the leading stablecoin issuer, has reported a significant milestone with an operating profit of over $1 billion for the first quarter of 2025. This impressive financial performance is largely attributed to the strong returns from its substantial holdings in U.S. Treasury securities. The company's latest attestation, conducted by the global accounting firm BDO, revealed that Tether's total exposure to U.S. Treasuries has reached nearly $120 billion, marking an all-time high.

The Q1 report, which covers financials up to March 31, 2025, underscores Tether's conservative reserve strategy and its continued dominance in the stablecoin market. The majority of Tether's profits for this quarter were derived from traditional investments, particularly its Treasury portfolio, which provided consistent income. This strategy has allowed Tether to offset the volatility often associated with cryptocurrencies, ensuring a stable financial position.

Tether's total assets for the quarter amounted to approximately $149.3 billion, while total liabilities stood at around $143.7 billion, with nearly all liabilities related to issued digital tokens. The report confirms that Tether's assets exceed its liabilities, providing a robust liquidity position with $5.6 billion in excess reserves. This financial health is a testament to Tether's prudent management and strategic investments.

USDT, Tether's flagship stablecoin, experienced substantial growth in the first quarter of 2025. The circulating supply of USDT increased by around $7 billion, accompanied by an estimated 46 million new wallets, representing a 13% rise from the previous quarter. This surge in user adoption reinforces Tether's dominance and liquidity in the stablecoin market, solidifying its position as a leading player in the digital asset space.

In addition to its core financial activities, Tether continued to pursue strategic investments through its Tether Investments division. Although these investments are not part of the reserves backing USDT, over $2 billion has been allocated to long-term initiatives in renewable energy, artificial intelligence, peer-to-peer communication, and data infrastructure. These investments reflect Tether's commitment to innovation and sustainability, positioning the company for future growth and impact.

The first quarter of 2025 also marked Tether's initial period operating under formal regulatory oversight in a specific region. The company is now licensed as a stablecoin issuer under the country’s Digital Assets framework, a move seen as bolstering its credibility in both emerging and traditional markets. This regulatory compliance is a significant step towards enhancing Tether's global reputation and expanding its reach.

Paolo Ardoino, CEO of Tether, highlighted the company's achievements, stating that "Q1 2025 showcases Tether’s continued leadership in stability, strength, and vision." This statement underscores Tether's commitment to maintaining its position as a trusted and reliable stablecoin issuer, while also exploring new opportunities for growth and expansion.

Following its record-breaking profit and expanding U.S. Treasury holdings, Tether is now focusing on a U.S.-focused stablecoin offering. In an interview, CEO Paolo Ardoino revealed that the company is preparing to launch a new product designed for the American market, potentially before the end of 2025. This move is part of Tether's strategy to engage with U.S. regulators and lawmakers to shape upcoming stablecoin legislation and enhance transparency through an independent audit by a Big Four accounting firm.

Tether's USDT already dominates the global market with a market cap of nearly $150 billion and a 66% share of the stablecoin market. Despite this dominance, USDT adoption within the U.S. remains limited, where Circle’s USDC holds more ground. Tether aims to bring its digital extension of the U.S. dollar to underserved markets abroad and now looks to replicate this success within the U.S. market.

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NEYO8uw11qgD0J
05/01
USDT dominance = 🚀 to the moon vibes
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DutchAC
05/01
Tether's $1B profit is no joke. Stablecoin game is serious biz. Who's in for the long haul?
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wodentx
05/01
I'm holding some USDT for its stability. Diversifying with $TSLA and $AAPL for that juicy growth.
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Silgro94
05/01
USDT's growth is wild. From $7B to $120B in Treasuries? 🚀 That's what I call YOLO investing.
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Ilabaca1
05/01
@Silgro94 K boss
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bllshrfv
05/01
New Tether product for U.S. could be a game-changer. Engaging with regulators might pave way for smoother sailing.
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Plus_Seesaw2023
05/01
@bllshrfv Totally agree, could be big.
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Great-Hornet-8064
05/02
@bllshrfv Do you think it'll boost USDT?
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SHIT_ON_MY_BALLS
05/01
Stablecoin market share: Tether's crown to keep.
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mtrosejibber
05/01
@SHIT_ON_MY_BALLS Tether's grip seems unshakable, but watch for Circle's moves in the US market.
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tgarvin35
05/02
@SHIT_ON_MY_BALLS Tether's dominance feels solid, but regulatory hurdles in the US could shake things up.
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Dry_Entertainer_6727
05/01
Tether's focus on U.S. market is big. Could shake up Circle's USDC dominance. Eyes on this space.
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josh252
05/01
USDT dominance is wild. Imagine tapping into that $150B market cap. Major player move.
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mmmoctopie
05/01
Tether's $1B profit? Pretty solid for Q1.
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tielgee
05/01
Tether's investments in renewables, AI, etc. are cool. Not just about stablecoins anymore. They're thinking future.
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Conscious_Shine_5100
05/01
Tether's $1B profit is no joke. They're playing the long game with those Treasuries. 🤑
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Conscious_Shine_5100
05/01
@Conscious_Shine_5100 What's next for Tether?
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SqueezeStreet
05/02
@Conscious_Shine_5100 Agreed, Tether's killing it.
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DanielBeuthner
05/01
$120B Treasuries? Tether playing the long game.
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Wood_chicken
05/01
@DanielBeuthner Tether playing it safe with those Treasuries. Solid move.
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_hiddenscout
05/01
Tether's regulatory play is smart. Getting licensed under Digital Assets framework could be a game-changer. 🤑
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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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