Tether Hits $1B in Quarterly Profits as USDT Capitalization Climbs $7B

Tether, issuer of the USDT stablecoin, generated over $1 billion in operating profit during Q1 2025, excluding any tax obligations.

As confirmed by BDO’s audit, the firm raised its allocation to U.S. Treasury securities as part of its reserve strategy. Its current holdings total around $121 billion in treasuries, with $98.5 billion in direct investments and the remainder spread across traditional investment funds and structured financial instruments—aimed at maintaining the operational stability of USDT.

The company’s high operating profit was primarily fueled by those U.S. Treasury investments, which now represent over 81% of its reserve base. At the same time, USDT’s market cap increased by more than $7 billion, while the number of wallets expanded by 46 million. Notably, Tether’s excess reserves declined to $5.59 billion, compared to $7.08 billion at the close of 2024.

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The primary cause was the distribution of dividends totaling more than $2.34 billion to shareholders. Simultaneously, over $2 billion was allocated through Tether Investments toward long-term investments in key technology sectors, including renewable energy, AI, and data infrastructure. These funds are not included in the reserve assets backing USDT.

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,

stated CEO Paolo Ardoino.

The quarter represents a milestone for Tether as its operations were, for the first time, conducted entirely under the regulatory framework of El Salvador. Having obtained a stablecoin issuer license under the country’s digital law, Tether is positioning itself in alignment with international compliance trends and targeting growth in frontier markets.

The implications are hard to ignore—especially considering that USDT and Circle’s USDC now make up more than 87% of the stablecoin market. The Bank of Italy has warned that instability in either token—or in the government bonds tied to their reserves—could ripple through the entire legacy financial system. The EU has already moved to limit USDT trading, citing its failure to meet legal and transparency requirements.

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Despite current volatility, analysts expect the market cap of dollar-denominated stablecoins to exceed $2 trillion by 2028. Notably, Tether’s other major offering—Tether Gold—has had its reserves verified in a quarterly audit, confirming over 7.7 metric tons of physical gold backing the token. The asset has already reached a market valuation of more than $770 million.