Tether Holdings Ltd. Reports $1 Billion Operating Profit for Q1 2025, USDT Dominance Expands

The issuer of the most popular stablecoin in the world, Tether Holdings Ltd., has revealed an operating profit of more than $1 billion for the first quarter of 2025

Tether, the issuer of the most popular stablecoin in the world, disclosed on Thursday that it generated an operating profit of over $1 billion in the first quarter of 2025. This announcement highlights the company’s significant role and earnings potential in the rapidly expanding digital assets ecosystem.

The company, which is known for its flagship USDT token, also noted a reduction in surplus reserves to $5.6 billion by the end of March, down from $7.1 billion in the previous quarter.

Tether’s Statement: A Record Q1 2025

In its Q1 2025 financial report, Tether reported having approximately $98.5 billion in direct U.S. Treasury bills and $23 billion in cash-equivalent assets through repurchase agreements and other similar instruments. This brings the total exposure to U.S. government securities and equivalents to nearly $120 billion.

The company’s USDT token saw its supply rise by $7 billion during the first quarter, and it now stands at a market capitalization of about $149 billion.

Furthermore, Tether disclosed an addition of 46 million user wallets for USDT, showcasing the increasing adoption of the token by both institutional and retail traders.

“Our excess reserves continue to provide us with the capital strength to support innovation across multiple sectors,” stated Tether, adding that these reserves have seen nearly $2 billion invested in projects across digital infrastructure, decentralized communications, artificial intelligence, and renewable energy.

Stablecoin Industry Landscape

Early 2025 has seen the dollar-pegged stablecoin industry remain largely concentrated, with Circle’s USDC and Tether’s USDT combining for an 87% share of the global market.

In anticipation of expanding institutional demand and the seamless integration of stablecoins into financial institutions, U.S. Treasury analysts project that by 2028, the collective market value of U.S. dollar-backed stablecoins could surge to over $2 trillion.

However, on the regulatory front in Europe, there are concerns regarding the prevailing dominance of tokens linked to the dollar. Recently, the Bank of Italy issued a cautionary statement that an over-dependence on stablecoins denominated in dollars might create systemic vulnerabilities, particularly if the underlying asset markets—specifically U.S. Treasurys—encounter significant shocks.