Tether Reports $1B Profit, $120B Treasury Holdings, 13% User Growth

Tether, the leading stablecoin issuer by market capitalization, has disclosed its financial results for the first quarter of 2025, revealing a substantial operating profit of over $1 billion. This achievement is primarily attributed to the strong performance of its U.S. Treasury holdings, which have reached nearly $120 billion. The company's latest attestation, conducted by the global accounting firm BDO, indicated that Tether's total assets amounted to approximately $149.3 billion, while its total liabilities were around $143.7 billion. This discrepancy underscores Tether's strong liquidity position, with $5.6 billion in excess reserves.

The first quarter of 2025 also witnessed a notable increase in the circulating supply of USDT, Tether's primary stablecoin. The supply expanded by approximately $7 billion, accompanied by an estimated 46 million new user wallets, reflecting a 13% increase from the previous quarter. This growth in user adoption further solidifies Tether's market dominance and liquidity in the stablecoin sector.

Beyond its core financial activities, Tether has continued to make strategic investments through its Tether Investments division. Over $2 billion has been allocated to long-term initiatives in renewable energy, artificial intelligence, peer-to-peer communication, and data infrastructure. These investments, though not part of the reserves backing USDT, demonstrate Tether's dedication to innovation and sustainability.

The first quarter of 2025 also marked Tether's initial period of operation under formal regulatory oversight in El Salvador. The company is now licensed as a stablecoin issuer under the country’s Digital Assets framework, a move that enhances its credibility in both emerging and traditional markets. Paolo Ardoino, CEO of Tether, highlighted that "Q1 2025 showcases Tether’s continued leadership in stability, strength, and vision."

Tether's strategic investments and new regulatory oversight in El Salvador indicate the company's efforts to gain global credibility and expand beyond just stablecoin issuance. The company is actively engaging with U.S. regulators and lawmakers to influence upcoming stablecoin legislation and is undergoing an independent audit by a Big Four accounting firm to enhance transparency. Tether has positioned its product as a digital extension of the U.S. dollar, particularly for underserved markets abroad, but now, it’s looking to bring that same proposition home.