Tether Profits Fall 23% in 2025, But Treasury Holdings Hit Record $122B
Crypto journalist
We are there
Crypto journalist
Share
The company behind the world's largest stablecoin, the USDt, has reported a sharp drop in annual profits even as it continues to pile on US government debt until 2025.
Key Takeaways:
Tether's 2025 profits fell nearly 23 percent to just over $10 billion, even as total assets increased to more than $49 billion.
The stablecoin issuer's holdings of US Treasuries hit a record $122 billion, making Treasuries the biggest support for USDt.
Strong demand has pushed the new USDt issue to nearly $50 billion, cementing its role as a major liquid asset in crypto markets.
According to its latest Financial Figures and Reserves report, prepared by accountants BDO, Tether expects net profits of more than $10 billion in 2025, down 23 percent from the roughly $13 billion it reported a year ago.
Despite the decline, the company said its balance sheet had expanded significantly, with total assets rising to more than $49 billion year over year.
Tether's US Treasury Holdings Hit Record $122B in 2025
Highlighted in the report is Tether's exposure to US Treasuries. Direct holdings of treasury bills It has risen to more than $122 billion by the end of 2025, the highest level the company has ever disclosed.
Short-term US government debt now accounts for the largest single component of USDt, with reverse repurchase agreements and a smaller share allocated to corporate bonds and other investments.
Dollar Page said the rising demand for the token reflects a growing Treasury stance that has been deliberately shifted to more liquid and lower-risk assets.
Over the past 12 months, the company has issued nearly $50 billion in new USDt, pushing the stablecoin's circulation to a new high.
According to CEO Paolo Ardoino, demand for USDt has been fueled by users looking to access US dollars outside of traditional banking channels, particularly in regions where financial systems are slow or difficult to access.
He noted that stablecoins are increasingly used in international payments, trade and savings activities.
USDt remains the cornerstone of the crypto market. With a market capitalization of about $185.5 billion, it ranks as the third largest cryptocurrency after Bitcoin and Ether, according to CoinMarketCap data.
As USDT is widely used in lieu of dollars for trading, securities and settlements, traders and exchanges closely monitor Tether's profits and reserves.
Tether's gold reserves will grow to $12B as XAU support expands
Beyond Treasuries, the report shows that Tether continues to multiply its reserves. The company maintains exposure to precious metals, including the XAUt stablecoin gold.
As of September 2025, Tether reports approximately $12 billion in gold exposure, with over 520,000 troy ounces reserved specifically for XAUt.
Separately, it holds a vast gold reserve estimated at 130 metric tons, worth an estimated $22 billion at current prices.
While profits are down from last year's highs, Tether will end 2025 with more than $6.3 billion in debt assets, according to a BDO assurance report.
As reported, Tether has officially launched USAT, a federally regulated, dollar-backed stablecoin specifically for the US market under the new Genius Act framework.
The token, issued by Anchorage Digital Bank, marks Tether's formal entry into the emerging U.S. federal stablecoin regime and marks a major shift in how the digital dollar functions in the U.S. regulated financial system.
Trending news, recommended popular crypto topics, price predictions
