Tether Profits Soar, But Reserve Surplus Hits 3-Quarter Low

Last Updated on May 2, 2025

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Tether logo on the screen of smartphone in mans hand with downtrend on the chart on a red light background. Source: vladim_ka - stock.adobe.com

Key Takeaways:

  • Tether posted a $1 billion profit in Q1 2025 and holds a $5.6 billion reserve surplus, down from $7.1 billion in Q4 2024.
  • Total exposure to U.S. Treasurys nears $120 billion, with $98.5 billion in T-bills and $23 billion in repo agreements.
  • Tether’s USDt market cap hit $149 billion, with $7 billion growth in Q1 and strategic investments in AI, energy, and data sectors.

Tether reported over $1 billion in operating profit for Q1 2025 and maintains a $5.6 billion reserve surplus, down from $7.1 billion in Q4 2024.

Its total exposure to U.S. Treasurys now nears $120 billion, including $98.5 billion in direct Treasury bills and over $23 billion in repurchase agreements and other cash-equivalent assets.

As of May 1, Tether’s USDt stablecoin reached a market capitalization of $149 billion, with $7 billion in growth and 46 million new user wallets added in Q1.

The company has invested over $2 billion of its excess capital in sectors like renewable energy, AI, peer-to-peer communication, and data infrastructure.

Despite Tether’s dominance, European regulators are raising concerns about overreliance on dollar-backed assets, warning of potential systemic risks.

USDt and USDC together represent 87% of the stablecoin market.

U.S. Treasury forecasts suggest the total market cap of dollar-backed stablecoins could rise to $2 trillion by 2028.

Tether’s continued growth and investment strategy reflect its push for long-term stability and technological innovation in the evolving stablecoin ecosystem.

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