Tether Reports $1B Q1 Profit, USDT Supply Grows 7%

Tether, the company behind the largest stablecoin by market cap, reported significant gains in the first quarter of 2025. According to a statement released following the publication of its Q1 2025 attestation, Tether generated over $1 billion in operating profit from traditional investments between January and March this year. The impressive returns were attributed to the strong performance of its U.S. Treasury portfolio, which helped mitigate the volatility in the crypto markets. Gold investments also played a crucial role in stabilizing the company's financial position.

The company's Q1 2025 financial report revealed that it holds $98.5 billion in U.S. Treasury bills, approximately $6.3 billion in money market funds, and $15 billion in overnight reverse purchase agreements. This substantial investment in U.S. Treasuries, which approached $120 billion when including indirect exposures from Money Market Funds and reverse repo agreements, underscores Tether's financial strength and growing global relevance.

Tether's circulating supply of its dollar-denominated stablecoin USDT grew by approximately $7 billion during the first quarter, and the number of user wallets increased by 46 million. This growth highlights the increasing adoption and trust in Tether's stablecoin, despite the market turbulence experienced during the quarter.

The first quarter of 2025 also marked a significant milestone for Tether, as it became subject to regulatory supervision in El Salvador. The company is registered as a stablecoin issuer under the country’s Digital Assets framework, which adds a layer of regulatory oversight and credibility to its operations.

Tether's ability to generate substantial operating profits and maintain a strong financial position, even in a volatile market, demonstrates its resilience and strategic investment approach. The company's focus on traditional investments, particularly in U.S. Treasuries, has proven to be a successful strategy in navigating the challenges of the crypto market. As Tether continues to expand its user base and increase its market share, it is well-positioned to maintain its leadership in the stablecoin sector.