CoinTelegraph 2025-05-01 22:53:53

Tether posts $1B in Q1 operating profit, $5.6 billion excess in reserves

Tether, the company behind the world’s largest stablecoin by market capitalization, has released its financials for the first quarter of 2025, disclosing nearly $120 billion in exposure to US Treasurys and over $1 billion in operating profit. According to Tether’s Q1 2025 financial report, the company’s assets include $98.5 billion in direct US Treasury bills, along with over $23 billion in additional exposure through repurchase agreements and other cash-equivalent assets. Excerpt from Tether’s Q1 2025 financial report. Source: Tether According to the announcement, Tether holds $5.6 billion in excess of reserves for its USDt ( USDT ) stablecoin, down from $7.1 billion in excess from the last quarter of 2024. The stablecoin has a market capitalization of $149 billion as of May 1. “Circulating supply of USDT grew by approximately $7 billion in Q1, with a 46 million increase in user wallets,” it said. The company's excess capital continues to fund strategic investments, with more than $2 billion allocated in renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure. The stablecoin market is broadly dominated by tokens pegged to the US dollar, with USDT and Circle’s USDC holding a combined 87% share. According to the US Treasury’s Q1 2025 report, the market cap for dollar-backed stablecoins is poised to reach $2 trillion by 2028 . European Union officials have recently raised concerns about the risks of overreliance on dollar-pegged stablecoins. According to the Bank of Italy, disruptions in the stablecoins market or the underlying bonds could have “repercussions for other parts of the global financial system.” Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight