Tether Nets Record Profit as US Debt Hoard Hits $141 Billion
Tether, the controversial however dominant spine of the digital asset market, reported a staggering $10 billion web revenue for 2025.
The outcomes underscore a yr of aggressive growth, remodeling the stablecoin issuer into one of many world’s largest personal holders of US authorities debt.
$50 Billion USDT Expansion Fuels Record Profits
The revenue, which Tether claims emanated solely from its core stablecoin enterprise, coincides with an enormous $50 billion injection of liquidity into the crypto ecosystem.
This issuance pushed the entire USDT in circulation above $186 billion. It is the second-largest annual growth within the firm’s decade-long historical past.
“USDT expanded all year long by 50 billion, as a result of international demand for {dollars} is more and more transferring exterior conventional banking rails, significantly in areas the place monetary methods are gradual, fragmented, or inaccessible. USDT, with its community impact and parabolic development, has turn out to be essentially the most extensively adopted financial social community within the historical past of humanity.” Tether CEO Paolo Ardoino stated.
While Tether maintains a $20 billion venture portfolio throughout sectors such as AI and biotech, these high-risk bets weren’t the drivers of this yr’s windfall. Instead, the revenue was a byproduct of the “higher-for-longer” rate of interest atmosphere.
Meanwhile, Tether’s stability sheet now rivals main sovereign nations. The agency’s complete reserve property climbed to a report $193 billion, supported by a massive $141 billion exposure to US Treasuries (each direct and oblique).
This $141 billion determine locations Tether among the many high international collectors to the US authorities, a actuality that has drawn each investor admiration and scrutiny from Washington.
This development comes with elevated systemic danger as the corporate nonetheless lacks an audit from a “Big Four” accounting agency.
Consequently, critics proceed to query the true liquidity of its $17.4 billion in gold and $8.4 billion in Bitcoin holdings throughout a market crunch. Nonetheless, the agency maintains that it nonetheless has over $6.3 billion in extra reserves.
Tether’s Regulatory Hurdles
The monetary triumph is presently being shadowed by a widening regulatory rift. In Europe, USDT continues to operate without a license under the Markets in Crypto-Assets (MiCA) framework.
More critically, the passing of the GENIUS Act within the United States has rendered USDT “unqualified” for home use.
In a defensive maneuver to guard its American pursuits, Tether has launched USAT. This is a separate onshore asset particularly designed to adjust to US federal mandates.
This bifurcated technique—utilizing USDT for international “shadow banking” and USAT for regulated U.S. commerce—marks a pivotal transition in Tether’s try to attain “too huge to fail” standing.
Despite these hurdles, USDT maintains a 60.5% market share. For now, Tether stays the undisputed chief in liquidity, even as international regulatory partitions start to shut in.
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