Tether, the issuer of the world’s largest stablecoin, revealed strong first-quarter earnings for 2025, posting over $1 billion in operating profit and disclosing nearly $120 billion in U.S. Treasury-related assets.
The financials, which were viewed by Blockworks, show that Tether held $98.5 billion in direct Treasury bills as of March 31, along with an additional $23 billion tied up in cash-like instruments such as repo agreements. The report also marks a continued tilt toward highly liquid, low-risk assets to support its flagship token, USDT.
The firm said it currently maintains $5.6 billion in reserves beyond what is needed to back USDT, a dip from the $7.1 billion surplus recorded at the end of 2024. USDT’s supply grew by $7 billion during the quarter, now topping $149 billion in circulation. Wallet addresses using the token also saw a bump, increasing by 46 million.
Tether continues to use some of its surplus capital for venture-style investments, with more than $2 billion now deployed across sectors like renewable energy, AI, encrypted communication, and digital infrastructure.
USDT remains the dominant dollar-backed stablecoin, along with Circle’s USDC. Together, the two represent 87% of the stablecoin market, which analysts expect to balloon to $2 trillion by 2028, according to U.S. Treasury forecasts.
Still, regulators in Europe are starting to sound alarms. The Bank of Italy warned in a recent publication that heavy dependence on dollar-linked tokens could pose systemic risks if market disruptions occur, especially given the role of U.S. government bonds in backing these assets.
Meanwhile, Tether is planning to roll out a new product for the U.S. market by the end of 2025, CEO Paolo Ardoino said in an interview with CNBC.
The launch timeline depends on progress in U.S. legislation around stablecoins. “We are just exporters of what we believe to be the best product the United States ever created — that is, the U.S. dollar,” Ardoino said.
USDT was originally created for use in underserved regions, such as rural areas in developing countries and small businesses outside Western financial systems, Ardoino said. He added that Tether is preparing a “different product” tailored for U.S. users.
