Tether, the world's leading stablecoin issuer, has announced a sharp drop in profits in 2025 while continuing to expand its holdings of US government debt. New financial data shows a clear shift toward capital preservation and liquidity as global demand for stablecoins increases. Despite lower profits, asset growth remained strong throughout the year. The results confirm Tether's continued importance in global crypto market activity.
In brief
- Tether's 2025 profit fell 23% to just over $10 billion, reflecting cautious reserves over changing market conditions.
- Total assets increased by more than $49 billion year-over-year, supported by USDt issuance of approximately $50 billion.
- Holdings in the US Treasury have exceeded $122 billion, making short-term government debt the backbone of USDt reserves.
- USDt's market capitalization of $185.5 billion highlights its central role in crypto liquidity, collateral and trade settlement.
Profit falls to $10 billion in 2025 despite strong growth in USDt supply
According to its Financial Figures and Reserves Report, Tether made a net profit of just over $10 billion in 2025. As noted in the BDO document, this figure represents a decline of around 23%. In comparison, the previous year's figure was $13 billion. Management cited changing market conditions and a more conservative reserve structure as key factors in the decline.
Balance sheet expansion continued at a rapid pace. Total assets have believed of more than $49 billion year-on-year, supported by strong USDt issuance. Over the past 12 months, approximately 50 billion new tokens entered circulation, pushing supply to record levels as usage increased across exchanges, payment platforms and cross-border transfers.
Exposure to the US Treasury stood out as the most notable development. Direct holdings of Treasury bonds exceeded $122 billion by the end of 2025, a level the company has never previously reached. Short-term government debt now accounts for the largest share of reserves supporting USDt, alongside reverse repurchase agreements and smaller allocations to corporate bonds and other investments.
Key figures disclosed in the report include:
- More than $122 billion held directly in U.S. Treasuries.
- Asset growth exceeding $49 billion in 2025.
- Around $50 billion in new USDt issued over 12 months.
- Excess reserves of more than $6.3 billion beyond liabilities.
Chief Executive Officer Paolo Ardoino said demand for USDt was driven by users seeking access to US dollars outside of traditional banking systems. Regions with slow, expensive or limited financial infrastructure accounted for much of this growth, according to the company.
USDt's $185 billion capitalization reinforces Tether's central role in crypto liquidity
Tether USDt remains a key instrument in digital asset markets. With a market capitalization of around $185.5 billion, it ranks as the third-largest cryptocurrency behind Bitcoin and Ether, according to market data. Traders and exchanges closely monitor Tether reserves due to the token's role in providing liquidity, use as collateral, and settling trades.
Tether reported approximately $12 billion in gold exposure tied to its XAUt token, backed by more than 520,000 troy ounces. Separately, larger gold holdings were estimated at around 130 metric tons, worth close to $22 billion at current prices.
Separately, Tether confirmed the launch of USAT, a federally regulated, dollar-backed stablecoin designed for the US market. Issued by Anchorage Digital Bank, the token operates under the GENIUS Act and marks a step toward deeper integration with the emerging U.S. federal stablecoin regime.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
