USDT Sets Record as Onchain Transfers Hit $4.4 Trillion

Tether’s USDT stablecoin reached a market cap of $187.3 billion in Q4 2025, despite a broader crypto market downturn following a major liquidation event in October. The token added $12.4 billion in value during the quarter, widening its lead over competitors such as Circle’s USDC and Ethena’s USDe.

Onchain activity also hit record levels, with quarterly transfer volume reaching $4.4 trillion and 2.2 billion transactions recorded. The average number of monthly active USDT wallets climbed to 24.8 million, representing roughly 70% of all stablecoin-holding wallets.

Tether reported an increase in its total reserves, reaching $192.9 billion by the end of Q4. This includes $141.6 billion in U.S. Treasuries, 96,184 Bitcoin, and 127.5 metric tons of gold according to recent reports. The company has also taken steps to combat illicit activity, freezing over $3.4 billion in funds tied to criminal activity in 62 countries.

Why Did This Happen?

The continued growth of USDT reflects a broader trend of stablecoin adoption in digital finance. Despite market volatility, stablecoins remain central to trading, liquidity provisioning, and cross-border payments. Tether’s dominance is attributed to a combination of factors, including lower transaction costs, faster settlement times, and expanding use cases beyond traditional crypto trading.

The rise in USDT’s market cap and user base came despite a major market correction in October. During that period, the total crypto market cap dropped more than one-third, while USDT gained 3.5% in value, outperforming competitors that either remained flat or declined sharply.

How Did Markets React?

The expansion of USDT’s market presence has been accompanied by regulatory and operational developments. In January, Tether launched USAt, a U.S.-compliant stablecoin issued by Anchorage Digital Bank. This move signaled a return to the U.S. market after years of regulatory clashes.

Partnerships also played a role in USDT’s growth. Opera recently expanded support for USDT and XAUT in its MiniPay wallet, which has 12.6 million activated wallets. This collaboration aims to increase access to digital assets in emerging markets.

What Are Analysts Watching Next?

Tether’s role in law enforcement and asset freezes has drawn attention, particularly as it assists governments in seizing funds tied to illegal activities. In February, Turkish authorities froze $544 million in assets linked to illegal betting operations, with Tether aiding in the execution.

Regulatory scrutiny remains a key concern. Tether has been working with enforcement agencies to freeze illicit wallets, and analysts are monitoring how these efforts affect its reputation and compliance costs.

Looking ahead, the stablecoin’s continued growth will depend on market conditions, regulatory developments, and the performance of the broader crypto ecosystem. Analysts expect stablecoins to maintain their role as a critical component of digital finance infrastructure, particularly in markets with limited access to traditional banking.