Tether Reports $1B Q1 Profit, USDT Supply Surges 13%

Tether, the leading stablecoin issuer, has reported a substantial operating profit of over $1 billion for the first quarter of 2025. This financial achievement is primarily attributed to the strong returns on its U.S. Treasury holdings, which have reached nearly $120 billion. The company's latest attestation, conducted by a global accounting firm, revealed 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 robust liquidity position, with $5.6 billion in excess reserves.

The first quarter of 2025 also witnessed a significant increase in the circulating supply of USDT, Tether's flagship stablecoin. The supply grew by around $7 billion, accompanied by an estimated 46 million new wallets, marking a 13% rise from the previous quarter. This surge in user adoption reinforces Tether's dominance and liquidity in the stablecoin market.

In addition to its core financial activities, Tether continued to pursue 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, while not part of the reserves backing USDT, highlight Tether's commitment to innovation and sustainability.

The first quarter of 2025 also marked Tether's initial period operating under formal regulatory oversight in a country. 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. The CEO of Tether emphasized that "Q1 2025 showcases Tether’s continued leadership in stability, strength, and vision."

Tether's strategic investments and new regulatory oversight signal its push for global credibility and expansion beyond just stablecoin issuance. The company is actively engaging with regulators and lawmakers to shape upcoming stablecoin legislation and is undergoing an independent audit by a Big Four accounting firm to enhance transparency. Tether has framed 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.