Tether Reports Over $1 Billion in Q1 2025 Profits Amid Strategic Treasury Holdings

Tether, the issuer of the world’s most widely used stablecoin USDT, has reported an operating profit exceeding $1 billion for the first quarter of 2025. The performance was largely driven by income from its substantial holdings in U.S. Treasuries, which have reached nearly $120 billion in value. According to the company’s latest attestation report, Tether’s total assets now stand at approximately $149.3 billion, with liabilities of $143.7 billion, resulting in $5.6 billion in excess reserves.

This $1 billion quarterly profit underscores the company’s ability to generate consistent returns from conservative investments, particularly as the digital asset market experiences increased volatility. The sizable income from U.S. Treasuries reflects rising yields amid persistent inflation concerns and interest rate pressures. By leveraging these instruments, Tether has positioned itself as a relatively stable force within the crypto economy, even as other digital asset companies face margin pressure and regulatory headwinds.

Despite this strong performance, the Q1 2025 figure represents a significant decrease from Tether’s record-setting $6 billion profit in Q4 2024. That quarter’s spike was largely attributed to notable gains from Bitcoin and gold holdings. However, those risk-on assets failed to deliver similar returns in early 2025, leading Tether to re-emphasize its reliance on traditional fixed-income instruments to preserve capital and generate yield.

USDT Supply Grows Alongside User Adoption

In tandem with its financial performance, Tether experienced notable growth in its user base during the quarter. The circulating supply of USDT rose by approximately $7 billion, reflecting growing demand across both centralized exchanges and decentralized finance (DeFi) platforms. This increase highlights the stablecoin’s critical role as a liquidity instrument and settlement layer within global crypto markets.

Moreover, Tether reported a 13% increase in active user wallets, suggesting that broader adoption continues despite regulatory scrutiny and ongoing discussions about stablecoin oversight. This trend indicates that institutional users and retail participants alike are increasingly relying on USDT for cross-border transfers, trading collateral, and as a hedge against local currency instability in emerging markets.

Tether’s first-quarter report not only emphasizes its financial resilience but also its strategic positioning in the face of macroeconomic and crypto-specific challenges. As the company continues to expand its asset base and user adoption, its ongoing disclosures and focus on transparency may serve to bolster confidence among regulators, investors, and the wider crypto community.