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