- Tether earned $1B in Q1 profits as U.S. Treasury holdings neared $ 120 B.
- USD₮ supply rose $7B in Q1, with 46M more wallets signaling rising adoption.
- $2B in new Tether investments targets AI, energy, and decentralized systems.
Tether has reported over $1 billion in operating profit for Q1 2025, with U.S. Treasury holdings nearing $120 billion. The stablecoin firm also saw a $7 billion increase in USD₮ supply and a 13% rise in active wallets during the same period.
Record Treasury Exposure and Reserve Composition
Tether’s Q1 attestation, conducted by BDO, revealed total assets of $149.3 billion against $143.7 billion in liabilities. “Tether just reported $1B in Q1 profit with $243.6B in USDT issued and $149.3B in assets/reserves,” according to a post by TylerD, emphasizing the scale of activity and reserve strength. The company’s $5.6 billion in excess reserves signals a strategic emphasis on liquidity, though it’s a decrease from the $7 billion posted last quarter.
The company’s reserves include $120 billion in U.S. Treasuries, with exposure extended via money market funds and reverse repo agreements. Bitcoin holdings reached $7.7 billion, while gold and other traditional instruments rounded out the reserve structure. Market conditions have prompted a new wave of strategies focused on asset reliability and counterparty risk minimization.
Tether Confirms Profit Surge from Traditional Investments
Tether announced over $1 billion in Q1 profits from its U.S. Treasury portfolio, confirming that “over $1 billion in operating profit from traditional investments” came during a quarter marked by volatility. The performance of gold helped cushion crypto fluctuations, while bitcoin-driven gains from previous quarters did not recur. These updates bring additional challenges for stakeholders balancing stable yields against volatile exposure.
A separate development signals another turning point: USD₮ circulation grew by $7 billion, while wallet usage expanded by 46 million, a 13% increase quarter-over-quarter. This growth reflects rising demand for stable digital dollar access across global markets and deepens USD₮’s integration into cross-border payments and DeFi infrastructure. Emerging evidence points toward shifting dynamics in stablecoin adoption at scale.
Strategic Expansion and Regulatory Milestones
Tether has allocated more than $2 billion into long-term investments through its Tether Investments arm, targeting sectors such as artificial intelligence, renewable energy, and decentralized data systems. These funds are not part of reserves backing USD₮ but represent parallel capital strategies aimed at long-term digital economy growth. Industry analysts have also flagged notable concerns around risk diversification and asset separation.
Changing regulatory frameworks have intensified discussions around issuer accountability. Tether’s first quarter under El Salvador’s Digital Assets framework marks its initial period under formal supervision as a licensed stablecoin issuer. The regulatory step adds legitimacy while signaling deeper integration with emerging-market financial systems.
