Tether, one of the largest issuers of stablecoins, reached a record $120 billion in U.S. Treasuries for Q1 2025, leading to significant profits.
Tether's Holdings in U.S. Treasuries
Tether's holdings in U.S. Treasuries, including indirect exposures, approached $120 billion, the highest in its history. This conservative reserve strategy allowed the company to report over $1 billion in operating profit, primarily from Treasury investments. Gold assets helped offset crypto market volatility.
Surge in USD₮ Wallets
In Q1 2025, USD₮ supply grew by $7 billion, while 46 million new wallets were created — a 13% increase from the previous quarter. This surge underscores rising global trust in Tether’s stablecoin as a reliable, dollar-based asset.
Investments and Regulatory Expansion
Tether has invested over $2 billion in emerging sectors like AI, renewable energy, and decentralized communications through Tether Investments. These are not part of the USD₮ reserve. Additionally, Q1 marked Tether’s first full quarter of regulatory oversight in El Salvador, where it is now a licensed stablecoin issuer — a major step in expanding its compliance footprint.
Tether shows steady growth in both reserve volumes and user numbers, indicating increasing interest and trust in cryptocurrency assets.
