Tether, the company behind the world’s largest stablecoin USDt, reported a sharp drop in annual profit in 2025 even as it continued to pile into US government debt, underscoring its shift toward more conservative reserve management.
Key Takeaways:
- Tether’s 2025 profit fell about 23% to just over $10 billion, even as total assets rose by more than $49 billion.
- The stablecoin issuer’s US Treasury holdings hit a record $122 billion, making Treasuries the largest backing for USDt.
- Strong demand pushed about $50 billion in new USDt issuance, reinforcing its role as a core liquidity asset in crypto markets.
According to its latest Financial Figures and Reserves Report, prepared by accounting firm BDO, Tether posted net profits of just over $10 billion in 2025, down around 23% from the roughly $13 billion it reported a year earlier.
Despite the decline, the company said its balance sheet expanded significantly, with total assets rising by more than $49 billion year-on-year.
Tether’s US Treasury Holdings Hit Record $122B in 2025
The standout figure in the report was Tether’s exposure to US Treasuries. Direct holdings of Treasury bills climbed above $122 billion by the end of 2025, the highest level the company has ever disclosed.
Short-dated US government debt now makes up the largest single component of the reserves backing USDt, alongside reverse repurchase agreements and smaller allocations to corporate bonds and other investments.
Tether said the growing Treasury position reflects a deliberate move toward highly liquid, low-risk assets as demand for its dollar-pegged token continues to grow.
Over the past 12 months, the company issued about $50 billion in new USDt, pushing the stablecoin’s circulating supply to new highs.
Chief executive Paolo Ardoino said demand for USDt has been fueled by users seeking access to US dollars outside traditional banking channels, particularly in regions where financial systems are slow or difficult to access.
He described the stablecoin as increasingly embedded in global payments, trading, and savings activity.
USDt remains a cornerstone of the crypto market. With a market capitalization of roughly $185.5 billion, it ranks as the third-largest cryptocurrency, behind Bitcoin and Ether, according to CoinMarketCap data.
Traders and exchanges closely monitor Tether’s profits and reserves because USDt is widely used as a dollar substitute for liquidity, collateral, and settlement.
Tether’s Gold Reserves Grow to $12B as XAUt Backing Expands
Beyond Treasuries, the report shows Tether continues to diversify its reserves. The company holds exposure to precious metals, including gold backing its XAUt stablecoin.
As of September 2025, Tether reported around $12 billion in gold exposure, with more than 520,000 troy ounces held specifically for XAUt.
Separately, it maintains a broader gold reserve estimated at about 130 metric tons, valued at roughly $22 billion at current prices.
While profits fell from last year’s peak, Tether ended 2025 with assets exceeding liabilities by more than $6.3 billion, according to the BDO assurance report.
As reported, Tether has officially launched USAT, a federally regulated, dollar-backed stablecoin built specifically for the US market under the new GENIUS Act framework.
The token, issued by Anchorage Digital Bank, marks Tether’s formal entry into America’s emerging federal stablecoin regime and shows a major shift in how digital dollars may operate inside the United States’ regulated financial system.
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