- USDT circulation holds at $150B as Tether prioritizes transparency with quarterly reserve disclosures amid past scrutiny.
- Profit shift from Bitcoin/gold to Treasuries signals risk-averse strategy; U.S. stablecoin launch awaits regulatory approval.
Tether, reported holding nearly $120 billion in U.S. Treasury investments by March 31, 2025, alongside a $1 billion quarterly profit. The figure represents a steep drop from the $6 billion profit recorded in the final quarter of 2024, when gains from Bitcoin and gold drove earnings.
The Q1 earnings, confirmed by global auditor BDO, reflect Tether’s heavier reliance on U.S. government debt. Direct Treasury holdings totaled $99 billion, with the remainder tied to money market funds and reverse repurchase agreements—short-term collateralized loans. While gold helped cushion volatility in crypto markets, steady Treasury returns formed the bulk of income.
USDT, the world’s largest dollar-pegged stablecoin, maintained $150 billion in circulation. Tether continues publishing reserve reports to verify backing for its tokens, a practice adopted after past scrutiny over transparency.
The prior quarter’s $6 billion profit relied heavily on rallies in Bitcoin and gold prices. By contrast, Q1 returns leaned on lower-risk assets, signaling a strategic pivot amid fluctuating crypto asset markets. Tether also confirmed ongoing plans to launch a U.S.-centric stablecoin, though regulatory clarity remains pending.
“Q1 2025 showcases Tether’s continued leadership in stability, strength, and vision. With record U.S. Treasury exposure, growing reserves, strong profits, and increased adoption of USD₮ worldwide, we remain focused on delivering trust, transparency, and value to hundreds of millions of users. Our mission is clear: to responsibly and compliantly power the digital economy and strengthen the role of the U.S. dollar on the global stage.” – Paolo Ardoino, CEO of Tether
Tether’s growing Treasury portfolio underscores a preference for stability as crypto markets face uncertainty. However, the profit decline highlights challenges in relying on traditional investments alone. ETHNews analysts note the firm must balance safe-haven assets with the liquidity demands of maintaining USDT’s peg during market stress.
