Tether made over $1 billion profit in early 2025
Tether, the company behind the world’s biggest stablecoin, USDT, said it made more than $1 billion in profit in the first three months of 2025. Tether’s coin is tied to the value of the U.S. dollar. The company also said it holds nearly $120 billion in U.S. government bonds and has $5.6 billion in extra reserves. This shows it is financially strong even though the crypto market is struggling.
An international accounting company, BDO, checked and confirmed these numbers. This is also the first time Tether reported its results under government rules in El Salvador, where it’s based.
By March 31, 2025, Tether had $149.3 billion in total assets and $143.7 billion in debts—mostly connected to its stablecoins. Although its extra reserves dropped from $7.1 billion in late 2024 to $5.6 billion now, it still has more than it needs to back its USDT tokens.
Most of Tether’s reserves are in cash or things that are easy to turn into cash. About 66% is in U.S. Treasury bills—$98.5 billion directly and another $23 billion in related investments. Tether also holds some gold and Bitcoin. Its Bitcoin is now worth $7.7 billion, a drop blamed on new U.S. rules for stablecoins.
Profits dropped from last year
Even though Tether made over $1 billion this quarter, that’s less than the $4.52 billion it made in early 2024. Last year’s profits were boosted by big gains in Bitcoin and gold. This year, profits mostly came from steady earnings on government bonds.
Tether is focusing on safer investments like government bonds, which helps it stay stable. Experts say its bond holdings are now as big as some countries’ investment funds.
A blockchain analyst said that using U.S. bonds gives Tether steady income and protects it from crypto market ups and downs.
USDT is growing fast
USDT’s use is growing quickly. In the first quarter, its supply went up by $7 billion and 46 million more wallets started using it, a 13% increase. USDT now makes up 66% of all stablecoins, far more than its biggest competitor, USDC, which has 25.4%.
USDT is especially useful in countries where people can’t easily use banks. It’s often used for crypto trading and sending money across borders.
Facing new rules and past issues
Tether is now under regulation in El Salvador after years of criticism about not being clear enough about its reserves. In 2021, it paid $42.5 million to settle a U.S. case over misleading claims. The company says it’s working hard to follow global rules.
Besides USDT, Tether is investing in new areas. It has spent over $2 billion on long-term projects like AI, clean energy, communication tools, and data networks. These don’t back the USDT token but show Tether wants to grow into other tech areas.
Tether also bought 8,888 more Bitcoins in the first quarter, now owning 100,521 BTC worth about $8.46 billion.
Challenges ahead
Even with strong profits, Tether faces problems. Bitcoin prices dropped 12% in the first quarter—the worst start to a year since 2018. New rules in the U.S. and Europe could force Tether to follow stricter financial reporting rules. Some European exchanges have already stopped listing Tether because it doesn’t have a special licence, something USDC’s maker Circle does have.
Still, Tether continues to lead the stablecoin market and shows it can make big profits in a difficult crypto world. As it deals with regulations and tries to grow, both investors and governments are watching it closely.
