Skip to content
- Tether’s U.S. Treasury investments hit a record $120 billion despite a sharp decline in profits.
- Q1 profits dropped to $1 billion from $6 billion, driven mainly by Treasury yields instead of crypto gains.
- USDT issuance slowed, but wallet growth remained strong with 46 million new active users in the quarter.
The financial and crypto markets were left astonished after Tether learned that its U.S. Treasury investment was worth $120 billion, which became its most enormous number yet. According to its Q1 2025 report, Tether announced the news even though profit numbers significantly decreased from the previous quarter.
First-quarter operations produced more than $1 billion in profit for the company. Earlier in Q4 2024, Tether earned $6 billion in profit, but this number significantly decreased to $1 billion in Q1 2025. The current profit at Tether originates from continued U.S. Treasury returns, but in Q4 2024, the company earned most of its profit from crypto and gold price gains.
The report indicates that Tether invested approximately $99 billion into U.S. Treasurys. Through money market funds and reverse repurchase agreements, Tether added holdings that brought the total U.S. Treasury investments to approximately $120 billion. The figures have been verified by the accounting firm BDO.
Total assets amounted to $149.3 billion during March 2025, while liabilities exceeded $143.7 billion. The financial reserve maintained by Tether totaled $5.6 billion during this quarter, though it remained slightly lower than the $7 billion surplus documented in the previous reporting period. According to the company, market condition fluctuations explained the reported dip and did not reflect any financial exhaustion.
Stablecoin Activity Slows, but User Growth Shows Strength
The quarter saw a reduction in new USDT token creation to $7 billion, while the previous period recorded $23 billion in issuance. Active user wallets of Tether increased by 13%, leading to 46 million new addresses, while users maintained their trust in the system.
All liabilities from Tether relate to its stablecoin creation, and its holding reserves predominantly consist of cash or equivalent assets. All Bitcoin, company equity investments, and gold assets not utilized as USDT backing compose the remaining balance.
Tether dedicates its funds to sustainable sectors, including renewable energy, peer-to-peer communications, and artificial intelligence. Under its integrated development plan, the company dedicated over $2 billion to these specific business domains.
Tether started its first quarter operations as a regulated entity in El Salvador after establishing its new global headquarters there.
The decrease in Tether’s profit did not affect its substantial U.S. Treasury investments, which now represent a new industry standard. Despite financial stability, the company upholds its leadership position across traditional financial operations and digital transactions.
Also Read: WazirX Users Outraged as Asset Recovery Pushed to 2026 Amid Court Battle
