USDT Issuer Tether Reports $1 Billion Q1 Profit, Marking Sharp Drop from Previous Quarter

Tether, the company behind the USDT stablecoin, said it had nearly $120 billion invested in U.S. Treasurys by the end of March, according to a report released Thursday. The company made more than $1 billion in profit from its traditional investments during the first quarter. However, that’s a big drop compared to the $6 billion profit it reported in the previous quarter.

Tether’s U.S. Treasury Holdings Approach $120 Billion

Tether has released its Q1 2025 report, showing solid financial results despite a rocky quarter for the crypto market. In a press release today, the stablecoin company announced it made over $1 billion in operating profit during the first quarter. Its investments in U.S. Treasurys also reached nearly $120 billion, the highest in its history. These numbers, confirmed by global accounting firm BDO, shows Tether’s increased dominance.  

Tether’s USDT remains the world’s largest U.S. dollar-backed stablecoin, with around $150 billion in circulation. The company regularly releases quarterly reports showing the reserves backing USDT.

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Tether said its nearly $120 billion in U.S. Treasury exposure includes both direct investments and indirect holdings through money market funds and reverse repurchase agreements. Direct investments in Treasurys made up about $99 billion at the end of Q1.

Tether made over $1 billion in profit in Q1 2025, down from $6 billion in the previous quarter. The earlier jump was mostly due to gains from Bitcoin and gold. This time, most of the profit came from steady returns on U.S. Treasurys, with gold helping balance out crypto market volatility.

Tether Maintains Operational Strength Amid Declining Profits

As of March 31, 2025, Tether reported about $149.3 billion in total assets and $143.7 billion in liabilities, leaving around $5.6 billion in extra reserves. That’s a bit less than the $7 billion buffer from the previous quarter but still shows strong financial management. The small drop could be due to shifting assets and market changes, not a sign of weakness.

Tether added $7 billion in new USD₮ during the quarter, which is lower than the $23 billion issued in Q4 2024. However, active user wallets grew by 46 million, a 13% increase, showing continued trust and adoption.

Almost all of Tether’s liabilities are linked to its issued tokens, sticking to its fully backed model. Most reserves are held in cash or similar assets, with the rest in gold, Bitcoin, and company investments that don’t back tokens directly.

Tether is still investing heavily in different areas. The company said it has put over $2 billion into long-term projects in fields like renewable energy, artificial intelligence, peer-to-peer communication, and data infrastructure.

Tether also mentioned that Q1 was its first quarter under government regulation in El Salvador, where it recently set up its new headquarters.