Tether Rakes in $4.5B Q1 Profit—Mostly from Treasuries, Because Stablecoins Love the ’Risk-Free’ Grift

Tether’s Q1 2025 earnings report drops like a gold brick: $4.5 billion in profit, with 85% hauled from U.S. Treasury holdings. The stablecoin giant now holds more T-bills than some mid-sized nations—proving once again that crypto’s ’wild west’ still rides on Uncle Sam’s coattails.

Meanwhile, USDT’s market cap balloons to $150B as traders flock to its ’stable’ illusion during another crypto volatility spike. Because nothing says decentralization like funneling cash into government debt.

CEO Paolo Ardoino touts ’hyper-transparency’ while quietly rolling profits into more black-box venture investments. The circle of crypto life continues: print tokens, buy bonds, repeat.

Reserve Strength and U.S. Treasury Bonds Highlighted

Tether’s latest report included numerous details showcasing the company’s financial robustness. The investment in U.S. Treasury bonds, for the first time in history, reached the $120 billion level. This amount constitutes a large part of Tether’s reserves, clearly demonstrating its cautious stance in the market.

The report indicated that the total assets amounted to $149.3 billion, while the company’s liabilities remained at $143.7 billion. Additionally, it was disclosed that $5.6 billion of excess reserves were allocated for risk management purposes. Although this reserve amount declined from the previous quarter’s $7 billion level, it still signals strong financial stability.

Tether’s account verification was supported by the independent audit firm BDO. BDO’s data confirms Tether’s adherence to principles of transparency and sustainability. CEO Paolo Ardoino stated regarding the matter, “Q1 2025 demonstrated Tether’s solid posture in terms of both strength and vision.”

Increasing Demand for Cryptocurrency Results in Strategy Shift

In the first three months of 2025, Tether experienced an approximately $7 billion increase in USD₮ issuance. During this period, about 46 million new user wallets were created. This rapid growth in user numbers highlights the increasing demand for stablecoins in the cryptocurrency market. Particularly in developing economies, the use of USD₮ is preferred due to easy access to the dollar.

Tether attracts attention not only with its reserves but also with its investment strategies. The company is making long-term investments by steering towards future sectors, such as artificial intelligence and renewable energy. The primary motivation behind this strategy is to enhance the power of the U.S. dollar in the digital world. At the same time, the initial regulated operational period in El Salvador began this quarter. Tether operates with the authority to officially issue cryptocurrencies in the country.

This regulatory process in El Salvador shows that Tether is taking serious steps towards compliance with regulations. The process, closely monitored by international observers, also sets an example in terms of the company’s transparency policies. All these developments indicate that Tether is growing not only technically but also corporately.