Tether, the company behind the world’s largest stablecoin USDt, reported a sharp decline in annual profit in 2025 even as it continued to accumulate U.S. government debt, highlighting its shift toward more conservative reserve management.
Key points to remember:
- Tether’s 2025 profit fell about 23% to just over $10 billion, even as total assets grew by over $49 billion.
- The stablecoin issuer’s U.S. Treasury holdings hit a record high of $122 billion, making Treasuries the biggest support for USDt.
- Strong demand has generated around $50 billion in new USDt issuance, strengthening its role as a core liquidity asset in crypto markets.
According to its latest report on financial figures and reserves, prepared by accounting firm BDO, Tether reported net profit of just over $10 billion in 2025, down about 23% from the roughly $13 billion reported a year earlier.
Despite the decline, the company said its balance sheet had expanded significantly, with total assets increasing by more than $49 billion year-over-year.
US Treasury holdings of Tether hit record $122 billion in 2025
The most notable figure in the report was Tether’s exposure to US Treasuries. Direct holdings of Treasuries surpassed $122 billion at the end of 2025, the highest level the company has ever disclosed.
Short-term US government debt now makes up the largest component of reserves supporting USDt, alongside reverse repurchase agreements and smaller allocations to corporate bonds and other investments.
Tether said the Treasury’s growing position reflects a deliberate shift toward highly liquid, low-risk assets as demand for its dollar-pegged token continues to grow.
Over the past 12 months, the company has issued approximately $50 billion of new U.S. dollars, pushing the stablecoin supply in circulation to new heights.
Chief Executive Officer Paolo Ardoino said 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 described the stablecoin as increasingly integrated into global payments, commerce and savings activities.
USDt remains the cornerstone of the crypto market. With a market capitalization of around $185.5 billion, it ranks third among cryptocurrencies, behind Bitcoin and Ether, according to data from CoinMarketCap.
Traders and exchanges are closely monitoring Tether’s profits and reserves as USDt is widely used as a substitute for the dollar for liquidity, collateral and settlement.
Tether Gold Reserves Reach $12 Billion as XAUt Support Expands
Beyond Treasuries, the report shows that Tether continues to diversify its reserves. The company holds exposure to precious metals, including gold which backs its stablecoin XAUt.
As of September 2025, Tether reported approximately $12 billion in gold exposure, with over 520,000 troy ounces held specifically for XAUt.
Separately, it maintains a larger gold reserve estimated at around 130 metric tons, valued at around $22 billion at current prices.
While profits fell from last year’s peak, Tether ended 2025 with assets exceeding liabilities by more than $6.3 billion, according to BDO’s assurance report.
As reported, Tether has officially launched USAT, a federally regulated, dollar-backed stablecoin built specifically for the US market under the new GENIUS Act framework.
The token, issued by Anchorage Digital Bank, marks Tether’s official entry into the new U.S. federal stablecoin regime and shows a major shift in how digital dollars can operate within the regulated U.S. financial system.
The post Tether Profit Falls 23% in 2025, But Treasury Holdings Hit a Record $122 Billion appeared first on Cryptonews.
