Key Takeaways:
- Tether’s assets now exceed liabilities, with over $5 billion in excess reserves..
- USDT’s supply and user base surged, with 46 million new wallets, reinforcing Tether’s dominance and liquidity in the stablecoin market.
- Strategic investments and new regulatory oversight in El Salvador signal Tether’s push for global credibility and expansion beyond just stablecoin issuance.
Tether, the stablecoin issuer, has reported an operating profit of over $1 billion for the first quarter of 2025, driven by strong returns on its U.S. Treasury holdings.
The company’s latest attestation, completed by global accounting firm BDO, also revealed Tether’s total exposure to U.S. Treasuries has approached $120 billion, its highest level to date.
Tether Profit Surges on Treasury Gains, Expands USDT to 46M New Wallets
According to the Q1 report, covering financials as of March 31, it confirms the firm’s conservative reserve strategy and continued dominance in the stablecoin market. The bulk of Tether’s profits this quarter came from traditional investments, particularly its Treasury portfolio, with gold performance offsetting the volatility in cryptocurrencies.
Total assets reached approximately $149.3 billion, while total liabilities stood at around $143.7 billion, of which nearly all were related to issued digital tokens. The report affirms that Tether’s assets exceed its liabilities, reinforcing its liquidity position with $5.6 billion in excess reserves.
USDT, Tether’s flagship stablecoin, saw strong growth in Q1. Its circulating supply increased by around $7 billion, accompanied by an estimated 46 million new wallets, a 13% rise from the previous quarter.
In addition to its core financial activity, Tether continued to pursue strategic investments through its Tether Investments division.
While not part of the reserves backing USDT, over $2 billion has been directed toward long-term initiatives in renewable energy, artificial intelligence, peer-to-peer communication, and data infrastructure.
The first quarter of 2025 also marked Tether’s initial period operating 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 seen as bolstering its credibility in both emerging and traditional markets.
Paolo Ardoino, CEO of Tether, said that “Q1 2025 showcases Tether’s continued leadership in stability, strength, and vision.”
Tether Eyes U.S. Expansion With New Stablecoin
Following its blockbuster $1 billion profit in Q1 and ballooning U.S. Treasury holdings, Tether is now setting its sights on a U.S.-focused stablecoin offering.
In an April 30 interview with CNBC, CEO Paolo Ardoino revealed that the company is preparing to launch a new product designed for the American market, possibly before the end of 2025.
Tether’s USDT already dominates the global market, with a market cap of nearly $150 billion and a 66% share of the stablecoin market, according to Nansen. Despite this dominance, USDT adoption within the U.S. remains limited, where Circle’s USDC holds more ground.
Ardoino says Tether is actively engaging with U.S. regulators and lawmakers to shape upcoming stablecoin legislation. The company is also 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.
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