Tether Experiences 23% Profit Decline in 2025, While Treasury Holdings Reach $122B

Tether Profit Falls 23% in 2025, but Treasury Holdings Hit Record $122B

In 2025, Tether, the organization responsible for the world's largest stablecoin, USDt, reported a noteworthy decrease in its yearly profit. However, it has also significantly increased its investments in US government debt, highlighting a strategic shift towards more cautious management of its reserves.

Key Takeaways:

Tether's profit for 2025 dropped by around 23%, totaling just over $10 billion, despite total assets increasing by more than $49 billion.
The company achieved a record level of $122 billion in US Treasury holdings, which now serve as the primary backing for USDt.
Robust demand resulted in about $50 billion in new USDt being issued, solidifying its position as a key liquidity asset in the cryptocurrency markets.

According to its recent Financial Figures and Reserves Report, prepared by the accounting firm BDO, Tether's net profits for 2025 amounted to just over $10 billion, reflecting a decrease of around 23% from the previous year's profits, which were roughly $13 billion.

Even with this decline, Tether reported a significant growth in its balance sheet, with total assets climbing by over $49 billion compared to the previous year.

Tether's Record Treasury Holdings of $122B in 2025

One of the most significant highlights from the report is Tether’s investments in US Treasuries. By the end of 2025, Tether's direct holdings of Treasury bills surpassed $122 billion—marking the highest level that the company has ever disclosed.

Short-term US government debt has now emerged as the largest single component of the reserves supporting USDt, alongside reverse repurchase agreements and smaller investments in corporate bonds and other assets.

Tether mentioned that its growing position in Treasuries indicates a strategic shift towards highly liquid and low-risk assets, driven by the ongoing demand for its dollar-pegged token.

Throughout the last year, the company issued approximately $50 billion in new USDt tokens, leading to an unprecedented increase in the stablecoin’s circulating supply.

Chief Executive Paolo Ardoino explained that the demand for USDt is largely driven by users looking to access US dollars outside of conventional banking systems, particularly in areas where financial infrastructure is less developed or difficult to utilize.

He emphasized that USDt is becoming increasingly integrated into global transactions, trading, and saving practices.

With a market capitalization of roughly $185.5 billion, USDt ranks as the third-largest cryptocurrency behind Bitcoin and Ether, according to CoinMarketCap data. Traders and exchanges pay close attention to Tether's profits and reserves, as USDt is frequently used as a dollar equivalent for liquidity, collateral, and settlement purposes.

Tether's Gold Reserves Reach $12B with Expanding XAUt Backing

In addition to Treasuries, the report indicates that Tether is diversifying its reserves. The company has invested in precious metals, including gold, which backs its XAUt stablecoin.

As of September 2025, Tether reported approximately $12 billion in gold exposure, comprising over 520,000 troy ounces specifically allocated for XAUt.

Furthermore, Tether maintains a larger gold reserve, estimated at around 130 metric tons, valued at about $22 billion based on current market prices.

Though profits saw a decline from last year's high, Tether concluded 2025 with assets exceeding its liabilities by more than $6.3 billion, according to the BDO assurance report.

Additionally, Tether has officially introduced USAT, a federally regulated, dollar-backed stablecoin tailored for the US market under the new GENIUS Act framework. This token, issued by Anchorage Digital Bank, marks Tether's formal entry into America's evolving federal stablecoin landscape, signaling a significant change in how digital dollars may function within the United States' regulated financial system.