Tether, the world's largest stablecoin issuer, has reported that its holdings of United States Treasury bills reached record highs in 2025. At the same time, the company's net profits experienced a year-on-year decrease of 23%.
According to a report published on Friday, January 30, 2026, prepared by accounting firm BDO, Tether's net profits in 2025 exceeded $10 billion. While this figure is substantial, it represents a 23% decrease from the $13 billion in profits reported in 2024. Despite the profit decline, Tether maintains its position as one of the most profitable entities in the cryptocurrency sector.
The report also revealed that Tether's direct holdings of U.S. Treasury bills climbed above $122 billion in 2025, marking the highest level ever. Including indirect exposure through repurchase agreements, Tether's total exposure to U.S. government debt surpassed $141 billion. The company characterized this increase in Treasury holdings as a strategic move towards highly liquid, low-risk assets. As of September 30, 2025, Tether's total reserves stood at $181.22 billion, exceeding its liabilities of $174.45 billion, which includes $174.36 billion tied to USDT tokens in circulation. This $6.8 billion in excess reserves serves as a buffer, ensuring the stability of the USDT's 1:1 peg to the U.S. dollar, even amidst macroeconomic volatility.
Tether's financial results are closely monitored by crypto market participants, as its stablecoin, USDT, is a major component of the cryptocurrency ecosystem. USDT ranks as the third-largest cryptocurrency after Bitcoin and Ether, with a market capitalization of $185.51 billion. Tether's profits and reserves offer insights into stablecoin market confidence, which is relevant for traders and exchanges that utilize USDT as a dollar substitute for liquidity and collateral.
In 2025, Tether issued $50 billion in new USDT, increasing the circulating supply to over $186 billion. Tether CEO Paolo Ardoino stated that the demand for USDT grew as global demand for U.S. dollars moved outside traditional banking rails, particularly in regions with slow, fragmented, or inaccessible financial systems. Ardoino claimed that USDT has become the most widely adopted monetary social network in history.
Besides U.S. Treasuries, Tether's reserves include other assets. The company has been accumulating gold as part of its reserves, reporting $12 billion in exposure as of September 2025. Tether holds 520,089 troy ounces of gold for its gold-backed stablecoin, XAUt, separately from a broader reserve of 130 metric tons, worth around $22 billion at current prices. The company also holds Bitcoin as part of its reserves.
Tether's financial strength and strategic vision are redefining the role of stablecoins, offering hybrid opportunities amidst macroeconomic uncertainty. However, the company's limited disclosure regarding the reasons behind the changes in profit or revenue raises questions about the specific factors driving the 23% drop, including market conditions, portfolio shifts, or higher operating costs.
